In a cash account the SEC requires that the stock be paid for before it is sold. If you sell it before the three days you are "free riding" and you CANNOT use those proceeds until the three days from the purchase. Your brokerage will restrict your account if you make it a habit to free-ride in a cash account.
Professional and experienced traders have sufficient monies in their account so they can do several trades and not depend on the proceeds of one trade.
Apparently you do not have sufficient capital in your account if you can not handle several trades but this is a problem with young people not understanding the rules that govern day trading nor do they have a money management plan in effect to guide them with their trading.
You could open a margin account and do your trading through a margin account BUT you do know that you must maintain $2000 minimum equity in the account at all time. But it appers you're not there yet either.
If you're going to day trade, make sure you have sufficient capital to trade and understand the rules, it seems you're not there yet.
BBG = You Idea of free riding is not correct
try out yahoo
I have an account with TDAmeritrade. If i sell out of a position within a few hours/days that money is unusable for 3 days. If I hold it for a while, that money is immediately usable upon exiting the position. How do I change it so money is usable after selling out of a position no matter how long I held it?
