How buying and selling work?

SoBe said: "Well, lets say you want to buy a stock with cash account on a Monday(trade date), I've read that the full payment must be made before or on the settlement date;3 days from Monday which is Wednesday. Then when you sell that stock, theres is another 3 days for the certificates to be delivered. My question is, does this mean I HAVE to wait 3 days after purchase before I can sell it and i have to wait another 3 days to have cash in my account again for the sale? I've read something about your account being suspended if you violate it. Also, how do people do trades over 1 day? I hear people buy and sell a same stock in one day? I'd appreciate your feed back. It would also help me out if you could describe your processes in selling and buying. thank you"

crankitdb711 said: "it's just like ebay :)"

Rbreb13 said: "In a cash account: If you buy a stock on Monday with "settled" cash. You can sell it at anytime you want. Same day, next, etc. After you sell, you have "unsettled" cash. It takes 3 days for the money to "settle". Some brokers will not allow you to buy stock with "unsettled" funds. Scottrade allows you to buy with "unsettled" money but if you sell before the 3 days is up you get a "free ride" warning. 2nd warning will cause your account to be restricted to trading with "settled" funds only. Apply for a margin account and you won't have to wait the 3 days for settling. Just because you have margin doesn't mean you have to use it. I've had one for a couple years and have never touched the margin money."

Pb3190 said: "The people trading stocks back and forth during the day are day traders. To day trade you need a minimum of $25,000 in your account. This is not just some brokerage rule, it is the law. Trying to day trade more than 4 times in a 5 day period without the $25k will get your account frozen."

LongArm said: "[QUOTE=Pb3190]Trying to day trade more than 4 times in a 5 day period without the $25k will get your account frozen.[/QUOTE] Even 4 times (in 5 days) will get you deemed a pattern daytrader (to be annoyingly picky about it ;)). Normally, when that happens, you'll have 5 days to meet the daytrading minimum equity call (you have to increase your account to $25k, as Pb said), and during that time, you're limited to 2x margin (daytrader's normally are granted 4x margin for the day). If you fail to meet the call within 5 days, your account is frozen for 90 days or until the call is met. "Frozen" means trading on a cash-available basis only. Rb's answer is spot-on. If you ever plan on doing any shorting, you'll need a margin account anyway."