Stock Market - Day Trading
12005 cr points
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Posted 3/24/12
Is it possible to buy and sell the same stock in a day then use the profits to invest in a different company the next day? I see on eTrade and Scottrade that they charge $9.99 and $7.99 respectively per trade. What exactly does "per trade" mean - does this mean per stock purchased or per transaction (i.e. A purchase of 100 stocks = 9.99/7.99 and a purchase of 20 stocks = 9.99/7.99)?

I've been considering investing some money into stocks and would appreciate any advice from those who know out there.

Thanks!
6268 cr points
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23 / M / The Netherlands
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Posted 3/25/12
To your first question, yes. Stocks can be bought and sold whenever you want (although you do need a buyer when you're selling)
So if you buy stocks worth 9.99 and then they go up to 10.00 you can sell them that second (if there is a buyer).

To the second question, I don't really understand it, so I'm sorry, but I can't help you there.
Posted 3/26/12
Hey SLD, i'm interested in your progress, Since sites like sharebuilder have phone apps now, i wanna get into it. Especially since Facebook is going public reallllllll soon. I do marketing for a few companies and do alot of research on current trends, lets keep in touch
20381 cr points
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50 / Bite the pillow.
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Posted 3/27/12 , edited 3/27/12
I'm a day trader (equity only, no options or future contracts). I have been swing and day trading for 20 years. It's my profession. I work for myself. I do not work for a broker or prop shop. Maybe I can answer some of your questions.


SLDJoPring wrote:

Is it possible to buy and sell the same stock in a day then use the profits to invest in a different company the next day?


Yes you can if you have a taxable account with margin. You can not buy/sell/short that quickly in an IRA, SEP or some other non-taxable or differed tax account without penalty. I believe the wait time between buying and selling in those accounts is 3-days. Your day trading equity account must be noted to your broker as a "day trading" account for tax reasons.


I see on eTrade and Scottrade that they charge $9.99 and $7.99 respectively per trade. What exactly does "per trade" mean - does this mean per stock purchased or per transaction (i.e. A purchase of 100 stocks = 9.99/7.99 and a purchase of 20 stocks = 9.99/7.99)?


I don't trade through eTrade or Scottrade, but usually that's a "flat fee" and would cover a particular share size range (i.e., 100 to 5000 shares per trade). Examples:

Let's say you buy 100 shares of Apple (ticker: AAPL) at $600 per share. That would cost you $9.99 for that trade. You then want to sell your 100 shares of Apple at 601.00. That would cost you another $9.99. So your total cost in commissions on the round trip (buy/sell) is $19.98. That comes out of the profit from your trade, btw, so if you take a loss on the trade, it's your loss plus the trade commissions ($19.98 in this case).

To buy a stock is a trade and to sell the same stock is another trade. Round trip. That's how it usually works. You'll want to contact an eTrade or Scottrade rep to confirm their trade commission structure.

Other brokers charge a penny "per-share". So if you trade 100 shares, it cost you a buck. 500 shares, five bucks, etc.


I've been considering investing some money into stocks and would appreciate any advice from those who know out there.


Ask anything you want. I'd be happy to try and help.

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Posted 4/5/12
I do marketing for a few companies and do alot of research on current trends.
Posted 4/6/12
I have an IRA which is set up for aggressive growth, since now, things are pretty cheap. I am not the type to take huge risks with money on the stock market. It is rigged up so the rich get richer, and the poor get poorer. But hey, do whatever you like. It's your money.
611 cr points
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28 / M
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Posted 4/16/12
I don't play the stock market but I'll tell you this much, all my friends who played the penny stocks and day trading ended up losing more than their original investment.

31 cr points
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54 / M
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Posted 4/19/12
I do not work for a broker or prop shop.
611 cr points
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28 / M
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Posted 5/2/12
Day trading isn't a sure fire way to make money in the stock market. Then again, I wouldn't get involved now. Too much losing going on.
maffoo 
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33 / M / England
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Posted 5/3/12
I've done this before, bought some shares and sold them the same day. I actually managed to make a small profit (about £50 I think.)

In my case it was more luck than judgement though, and when I checked the price over the following days I realised I could have made more if I'd waited A bit annoying, but I think it reflects how cautious I am on the rare occasions when I have enough cash to put into shares.
Posted 5/4/12
are any of you guys going to try the facebook ipo?
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