Can you guys shed some light what Schwab is calling a good faith trading violation?

The chat people are giving me conflicting info an I just want to know what I need to do to allow me to sell a position and purchase another on the same day. Situation: I held 246 shares of a stock since \~1/30/24. On 2/20/25 I deposited \~$40K. Today, I sold 246 shares and attempted to buy another ETF with those funds and I was greeted with a "This buy order was accepted without sufficient settled funds to trade in your account".

However, the person I spoke to initially said this which makes me feels there is no limit if I can reinvest:

>**If you wish to reinvest the funds, they are available immediately after the sell order**, fills. If you wish to withdraw the funds, you are required to wait a minimum of one business day

>**If you sell something that was paid for with settled funds, then the funds are available immediately**.

This leads me to believe the funds are available immediately (Based on my interpretation of what she said above) as I did buy these shares a month prior.

>So it looks like the buy order of the shares occurred today. This means, the buy order was not settled when you decided to sell and that is why the funds are not available immediately.

The reinvestment buy order was completed right after the sale of the stocks that had been in my portfolio for a month.

>A good faith trading violation occurs when you buy a stock or investment with unsettled funds and then sell those new shares before the proceeds funding its purchase have settled. In other words, you sell stock 1, to buy stock 2. There is no issue with this, but when you sell stock 2 before the settlement period has passed for selling stock 1, this becomes a good faith violation. This has restricted your available cash until the trades settle.

Then she contradicts her original statement. She said there was NO settlement fund for reinvestment above. How can they be available immediately after a sell order if the below is also true?

>So the rules I discussed about funds being available immediately after the sell does not apply due to the good faith violation on the account currently.

Then this when asking a about selling the shares I've held for a month.:

>Those are settled yes but sales have their own settlement. All trades require one business day to settle.

Then this LOL

ME:
Ok you said this before "If the funds used to purchase the shares were settled at the time of the purchase, they are available immediately after the sale.

>CSR:
This would be true if you had not received a "Good Faith Violation" which restricts your account to "settled funds only."

And again later, to confuse me even more as they clearly are NOT available for reinvestment due to this good faith violation which I still don't understand as I sold something I've held for over a month

>They are available for reinvestment but considered unsettled.

So I asked: If they are available for reinvestment what activity did I do this morning that prevented them from being able to be reinvested??

And then she leaves it with this when I asked what I could do to prevent this:

>If you anticipate and trade with regards to the settlement time of one business day for all trades, you will be good to go.

So I can reinvest same day then I can't, then I can. I was able to reinvest in the stock I had just sold once I realized I was unable to purchase the stock I had sold for. Why would that not violate this good faith clause?

Thanks, and sorry for the long winded question.

Dave