Is it possible to make a living by only buying and selling stock?

Question

Is it possible to make a living by only buying and living stock? I'm guessing that you would need so much money in the first place to invest that you really wouldn't need to worry about making money if you had alot in the first place.

Answer 1

The way most people make a living at it (not including stock brokers who make a living by placing orders or clients, they don't actually invest their own money) is by taking advantage of arbitrage opportunities. These are very rare circumstances which last for small moments. When you watch the stock report, they will usually talk about the 2 major stock exchanges NYSE and NASDAQ. However, there are many different stock exchanges across the country and around the world.

For example, If one sees that a stock is trading for $39 on one exchange, but trading for $40 on another exchange, they can by one share at the first exchange for $39, then turn around and sell it on another exchange for $40. That investor, in a matter of seconds, has just made a profit of $1 per share. So if they do this with 1000 shares, then they made $1,000 (minus any fees that they have to pay).

Opportunities like this don't last long, so the only way to make a go at it is to be constantly watching the prices of many stocks from around the world.

You may hear about people who Day Trade. They buy a stock, and as soon as it goes up a little bit, they sell it. It is my experience that nobody knows when a stock goes up or down. I have found people that make a living doing this, only do it for a short while.
My advise is if you want to be a Day Trader, is to not quit your day job. If you want to be an Arbitrage trader, then learn how the stock market works first. You also need to learn how currency markets work too. After you know how they work, you should be able to figure out arbitrage.

Answer 2

Everything in the world is possible. From your question I can sense that you do not have a direction. Even you have the so much money to invest in the first place does not mean making money. An action needs to be done to get the result. The choice of today leads to the result of tommorrow. Get yourself financial knowledge first before investing. Read 23 habits of investing from Mark Tier.

Answer 3

Yes, I know a few people that do actually. But you have to know what you're doing. You can't just buy and sell at random. I would recommend taking a few classes at your local community college that teach the basics of the stock market. Good luck!

Answer 4

Yes, and people do. They aren't all rich people, but it does help. Still, from those who do make a living at it (mine is but a hobby), it reminds me of the notions of certain sexual attributes--it is not what you have but how you use it, or as Mae West used to say, "It isn't the men in my life but the life in my men." I know a millionaire who is happy if he beats the rate the bank would have paid for the money and I know another who has much less but gets much more out of it, many times more.

Answer 5

Yes. Open a brokerage account at Zecco and I will make at least $10,000.00 USD for you for FREE for educational purposes only. (I am a Portfolio Manager with over a decade of experience in the Stock Markets)

Answer 6

Yes...the old joke is how to have a million dollars to invest. You start with 2 million and....

You would need to be very good, very lucky, or very rich to make a living doing this at home.

Answer 7

yes lots of ppl know lots about stocks and wen they made some money, they make more and more until their practically irich and just keeping on doing stock trade with bigger amounts of money