Question about stock trading..I want to buy and sell stock daily and wondering how does day trading work?
I am interesting in buying 2,000 dollars worth of stock and then selling it if I can profit at least $75 from selling it. I am interesting in doing this twice a week but will only do it if I can sell and profit off of the first stocks I buy. How can I do this, bc I know there are different restrictions and delays bc of stock settlement.
Unfortunately, it is just simply not that easy. If it was, EVERYONE would do it and we would all be toasting ourselves as our yachts rafted together in St. Lucia.
Yes there are restrictions and those are a few mouse clicks and keystrokes away. Do your research.
If you "will only do it if I can sell and profit off of the first stocks (you) buy" then don’t do it. You might get lucky or you might not.
Did you have any idea at all this morning where Boeing was going to close at this afternoon? Or Alcoa? Or 3M? Of course not. No one did (and don’t let anyone tell you different). Day trading is not for the timid nor is it for people with a low tolerance for risk. If you want to learn how to do it, unfortunately for you, it is going to take much more than simply asking a question on Yahoo Answers.
Comments
The technical definition of day trading is someone who buys and sells the same stock on the same day…but I don’t think that is really what you are asking.
I think what you are asking is will this work? Can I make money doing this?
The answer to that question is, no, you cannot.
In general, trading stock (which is really what you are talking about, not day trading) requires significantly more cash (> $100,000) and experience to turn into a profitable business. Even then, most people fail.
Long term investing — a rate of 7%-11% per year on average over ten year periods — is much more reasonable and reliable.
References :
If you only plan to do only two day trades a week, there’s no additional restrictions. You buy and sell stocks the same way, exept that you exit all positions before the closing bell.
The T+3 settlement does not affect your ability to open new positions even if your previous trades have not yet settled.
The SEC requires a "pattern day trader", ie. someone who excutes more than three day trades in any five consecutive trading days, to maintain at least $25,000 account equity.
References :
Unfortunately, it is just simply not that easy. If it was, EVERYONE would do it and we would all be toasting ourselves as our yachts rafted together in St. Lucia.
Yes there are restrictions and those are a few mouse clicks and keystrokes away. Do your research.
If you "will only do it if I can sell and profit off of the first stocks (you) buy" then don’t do it. You might get lucky or you might not.
Did you have any idea at all this morning where Boeing was going to close at this afternoon? Or Alcoa? Or 3M? Of course not. No one did (and don’t let anyone tell you different). Day trading is not for the timid nor is it for people with a low tolerance for risk. If you want to learn how to do it, unfortunately for you, it is going to take much more than simply asking a question on Yahoo Answers.
References :
Series 7 General Securities License holder.
try read this free ebook:
http://hugebook.info/category/stock-trading
References :
February 28th, 2010 at 12:38 pm
I answered a similar question asked by someone else as seen below:
Check out http://www.forexscalping.biz
for investing tips in forex.
Don’t put all your money into
investing but with forex UNLIKE stocks or futures
the minimum investing amount is much much lower
and greater potential for profit.
This is not investing advice but a suggestion to explore and judge
for yourself other viable investing vehicles where entry is easier
without investing too much upfront.
Judge for yourself.
References :
http://www.forexscalping.biz