Well I know I am flagged as a pattern day trader but what does the second paragraph mean

Damn, I forgot to mention that. Good question

So, if you have $1,000 and you find a stock you want that's $1. You can buy and sell $1,000 of that stock in any amount of orders or denominations you want, on that one day, within the week you opened it.

That's actually how people get into day-trading when having below the $25,000 requirement. They'll put as much money as possible into the account and just buy/sell smaller stock throughout the day. As long as your total amount you spent doesn't exceed the amount of your money you had available throughout the day then that is not considered a day trade.

PDT ONLY APPLIES TO MARGIN ACCOUNTS AND CASH ACCOUNTS WHO ARE SPENDING UNSETTLED FUNDS

If you are still confused, it's actually easier for me to explain the opposite.

So, when you open a position and close the position within the same day, the money isn't actually yours yet. It takes a day for the money to switch from the broker's account to your account (hence the PDT rule being opening/closing too many positions on a single day within a week - because you're not spending your money or even money available to you from having a margin account.

And finally, a real world example.

Stock XYZ is selling for $12.30 and I have $1,000 in my account. I can day trade five shares roughly 16 times in that one day without over-spending the $1,000 I had in the beginning.

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