STOCKS : Is This A Fair Way To PLay?

[Kenji4861]

I know you cannot be sure about how a stock will be in the future

But this one company keeps going up and down.. a buck or two.. say.. between 10 and 12.

I am so sure.. when it hits $10.. It will go back up to $12... (again, I understand.. can never be sure about stocks.. but I'm willing to bet on it that it will)

Is it fair game.. to buy 1000 shares at $10.. sell at $12... and keep repeating that?

Anything I should be aware of other than the $7.99 Scottrade is charging me per transaction?

 

[ThaGrandCow]

that's perfectly legal

 

[FoBoT]

yes, its called day trading

good luck

 

[Ronstang]

That is exactly how a lot of daytraders make millions.

 

[Banana]

You have to share your loot with Uncle Sam--"CAPITAL GAINS"

 

[StageLeft]

It's fair, but it won't happen. There are no tricks to the stock market. Thousands of people have spent thousands of hours trying to figure it out and the majority of them can't even MATCH the market, let alone beat it. You don't know any tricks, regardless of whether you think you do. And if you do it's almost certainly insider trading

 

[theNEOone]

Originally posted by: Skoorb
It's fair, but it won't happen. There are no tricks to the stock market. Thousands of people have spent thousands of hours trying to figure it out and the majority of them can't even MATCH the market, let alone beat it. You don't know any tricks, regardless of whether you think you do. And if you do it's almost certainly insider trading

indeed.


=|

 

[DaveSimmons]

Originally posted by: Ronstang
That is exactly how a lot of daytraders make millions.

though better than two-thirds of them lose money.

Day-trading gurus like Wade Cook that were big during the internet bubble are now bankrupt.

When thinking about day trading you also need to consider taxes and trading fees at your brokerage.

For most people, the slots at Vegas are a better gamble, since they understand what they're doing much better and the house's edge is fairly small.

www.fool.com might have some good discussions on it if you still have your heart set on day trading.

 

[kranky]

You need to find out how your trades will be executed. For the sake of argument, let's say you are correct in your prediction of the stock movements. Now, let's say you put in an order to buy the stock at $10. What happens if the stock briefly drops to $10, but starts rising before your order is filled? Do you want them to buy it anyway? Or do you want to wait until it drops back to $10?