Replies to post #21468 on ProText Mobility Inc (TXTM)

[Carjockey2]

Just use the funds that you know are available. If you sell a stock tomorrow and you know let's say it's worth $1,000 in your acct then you would only buy $1,000 worth of another stock. Or if you're waiting for the stock to dip down to buy more or to flip again you don't want to buy any more than the $1,000 that you sold earlier in the day.

The only difference is if you have the margin account you can buy and sell within a 3-day period. I believe it's three times where if you don't have a margin account you have to wait the full 3 days to buy.

[fojcol]

Having a margin account means the brokerage (Ameritrade) is willing to front you $$$. When it comes to clearing a penny trade (after you've sold), having a margin account means, technically, that Ameritrade will front you the funds from the trade even before they've cleared (which takes 3 days), so you'll have the $$$ available immediately to trade again. Just apply for a margin account.

One more thing. When you deposit funds into your margin account, that $$ is available immediately to trade most securities, but not pennies. It takes 5 days for the deposited funds to clear before you can trade pennies.

One more thing: If your account is an IRA, it can't be a margin account.