Quote:
Originally Posted by jharris8567
My second flip!! And it only took a few days!!
10/29/2009 10:29 AM Buy 850000RMDM@$0.0001 $-85.00 Executed
11/03/2009 12:15 PM $79.0202 Sold 395,101 RMDM@ $0.0002 Details
11/03/2009 12:14 PM $86.4798 Sold 454,899 RMDM@ $0.0002 Details
So can anyone clear up the law on buying/selling the same stock. Can I buy this one up again?
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If I remember correctly, unless you have at least $25,000 in equity, you can not day trade.
Selling the same stock that you bought earlier the same day is called a day trade.
For example:
You can buy any amount of shares of company A, B and C with in a single day with out consequence.
You could then sell any or all of them the next day without consequence.
However, if you sold any of company A, B or C on the same day as you bought it, then this is considered a day trade.
If you do 3 day trades within 5 market days, then you are flagged as a day trader. If you get flagged as a day trader with out the $25,000 in equity, then you may simply have your trade account suspended, or, in repeated violations, you may be fined.
If you deal mainly in sub penny stocks, then you don't really have to worry about accidentally day trading, as it usually takes multiple days to flip a stock.
I realize that is probably more information than you asked for, so sorry about that. But, in short, the answer to your question is that yes, you can buy the same company again with out any problems, as long as you don't sell it until tomorrow at the earliest.