Are you wondering how frequently you can sell stocks on Robinhood without running into problems? Let me clear this up for you in simple terms I’ve been trading on Robinhood for years and have bumped into these restrictions myself a few times
The Quick Answer
You can sell stocks on Robinhood as often as you want UNLESS you’re making day trades. If you make 4 or more day trades in a 5 trading day period (and these day trades make up more than 6% of your total trades) you’ll be flagged as a pattern day trader and will need $25,000 in your account to continue day trading.
What Exactly Is a Day Trade on Robinhood?
A day trade happens when you:
- Buy and sell the same stock or ETP (exchange-traded product) within the same trading day
- Open and close the same options contracts within the same trading day
Important to know that the trading day on Robinhood ends at 8 PM ET. Any trades made during overnight trading hours (between 8 PM-12 AM ET) will count toward the next trading day
The Pattern Day Trading (PDT) Rule Explained
The PDT rule isn’t something Robinhood made up – it’s actually a FINRA regulation that all brokerages must enforce. Here’s how it works:
- Your account gets flagged as a pattern day trader if you make 4+ day trades in 5 trading days
- These day trades must represent more than 6% of your total trades during that same period
- Once flagged, you need to maintain a portfolio value of at least $25,000 to continue day trading
- If you can’t maintain $25,000, you’ll face restrictions
I found out the hard way that the 5 trading day window doesn’t necessarily align with the calendar week. For example, it could be Wednesday through Tuesday.
How to Check Your Day Trade Count on Robinhood
Don’t wanna accidentally hit that magic number 4? Me neither. Here’s how to check your day trade count:
- Open the Robinhood app
- Tap “Account”
- Tap “Menu” (3 bars) or “Settings”
- Select “Investing” → “Day trades”
This shows how many day trades you’ve made in the current 5-day trading period.
What Happens When You’re Flagged as a Pattern Day Trader?
If you get flagged, you’ve got a few options:
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Keep $25,000+ in your account: This lets you continue day trading without restrictions.
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Use your one-time PDT flag removal: Robinhood offers a one-time courtesy removal of the PDT flag. It’s like your “get out of jail free” card, so use it wisely!
-
Switch to a cash account: Pattern day trading restrictions only apply to margin accounts. With a cash account, you can day trade without PDT restrictions, BUT you’ll have to wait for funds to settle after selling before you can use them again.
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Stop day trading: Just wait 90 days without day trading and the flag will be removed.
Cash Accounts vs. Margin Accounts
This distinction is super important:
Cash Accounts:
- Not subject to PDT rules
- Can make unlimited day trades
- Must wait for funds to settle after a sale (typically 2 business days for stocks)
- No access to instant deposits for trading
Margin Accounts:
- Subject to PDT rules
- Limited to 3 day trades per 5 trading days (unless you have $25,000+)
- Immediate access to funds after selling
- Access to instant deposits for trading
Some Confusing Day Trading Scenarios Explained
I remember being really confused about what counts as a day trade when I first started. Here are some examples to clear things up:
Example 1: Basic Day Trade
Starting with zero shares of ABC:
- Buy 1 share of ABC
- Sell 1 share of ABC
= 1 day trade
Example 2: Multiple Buys and Sells
Starting with zero shares of ABC:
- Buy 1 share of ABC
- Buy 2 more shares of ABC
- Buy 7 more shares of ABC
- Sell 1 share of ABC
- Sell 5 shares of ABC
- Sell 4 shares of ABC
= Still just 1 day trade (because there’s only one change in direction from buys to sells)
Example 3: Two Day Trades
Starting with zero shares of ABC:
- Buy 50 shares of ABC
- Sell 15 shares of ABC
- Sell 35 shares of ABC
- Buy 10 shares of ABC
- Sell 10 shares of ABC
= 2 day trades (because there are 2 changes in direction from buys to sells)
Example 4: Extended Hours Trading
- Buy 5 shares of ABC at 8:01 PM ET on Monday
- Sell 1 share of ABC at 10 AM ET on Tuesday
= 1 day trade (because both transactions occur on the same trading day – Tuesday)
Pattern Day Trade Protection Feature
This is a lifesaver! Robinhood has a “Pattern Day Trade Protection” feature that will warn you before you place your 4th day trade in the 5-day period. Here’s how to enable it:
- Go to “Account” → “Menu” (3 bars) or “Settings”
- Select “Investing” → “Day trade settings”
- Make sure Pattern Day Trade Protection is turned “On”
With this enabled, Robinhood will give you a warning before you make that 4th day trade, giving you the option to either proceed or cancel the trade.
Multiple Accounts on Robinhood
An important note: PDT rules apply at the user level, not the account level. If one of your accounts gets flagged for PDT and you switch it to a cash account, then switch another account to margin, the PDT flag will carry over. So you can’t just open multiple accounts to get around these restrictions.
Consequences of Breaking PDT Rules
If you make that 4th day trade while flagged for pattern day trading and don’t have $25,000 in your account, Robinhood may restrict your account to “position closing only.” This means you can’t open new positions – you can only close existing ones.
Additionally, if you’re flagged as a PDT, you’ll be ineligible to participate in Robinhood’s Stock Lending program or earn interest in their Brokerage Cash Sweep program while in a margin account.
Common Questions About Selling on Robinhood
Can I sell all my stocks in one day on Robinhood?
Yes, you can sell all your different stocks in one day without triggering PDT rules. The rule only applies when you buy and sell the SAME stock on the same day.
Do I have to wait 3 days to sell a stock on Robinhood?
Nope! You can sell a stock immediately after buying it. However, if you’re in a cash account, you’ll need to wait for the funds to settle (typically 2 business days) before using those funds again.
What happens if I sell stock after hours on Robinhood?
After-hours trades count toward the trading day that follows. So if you buy a stock during regular hours and sell it after 8 PM ET, it won’t count as a day trade for that day.
Tips to Avoid PDT Restrictions
-
Use limit orders instead of market orders: This gives you more control over your entry and exit prices.
-
Consider swing trading: Buy and hold positions for more than one day to avoid day trading restrictions.
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Keep track of your day trades: Always know how many day trades you’ve made in the rolling 5-day period.
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Maintain $25,000+ in your account: If you’re serious about day trading, this is the simplest solution.
-
Use a cash account for day trading: Just remember the settlement period limitations.
My Personal Experience
When I first started on Robinhood, I got flagged as a pattern day trader without even realizing what I was doing. I didn’t have $25,000 in my account, so I had to use my one-time PDT removal. After that experience, I switched to a cash account for a while until I built up enough capital.
Now I maintain enough in my account to day trade without restrictions, but I still use the Pattern Day Trade Protection feature as a safeguard. It’s definitely saved me a few times!
Final Thoughts
Understanding how often you can sell on Robinhood really comes down to whether you’re day trading or not. Regular selling isn’t restricted – it’s only when you buy and sell the same security on the same day that these rules come into play.
Remember that these rules exist for your protection – day trading can be risky, especially for beginners. Robinhood’s implementation of these rules includes helpful tools like the day trade counter and pattern day trade protection to help you avoid accidentally breaking these regulations.
Whether you decide to maintain $25,000+ in your account, use a cash account, or simply limit your day trades, make sure you understand these rules to avoid unexpected restrictions on your trading activity.
