Has anyone had success with continual quick flipping of stocks? Say I start with $1000. Say I pick company ABC in the morning for a buy order of $3.00, then a day or so later set a sell order at $3.10. I pay may $8.00 market order commission twice for a total of $16. Profit from buy/sell = approx $17.33 after commissions.
I successfully complete this style of transaction 50 times in a year for an approx profit of $866.50. Do people try this?
I realize there are pitfalls such as, don't put all your eggs in one basket, or a quick downturn/bad timing. I just want to know if anyone has successfully done this? Daytrading is the term? I wouldn't do something like this with my life savings of course....
2007-02-07 15:18:29 · 4 answers · asked by Mitch 2 in Business & Finance ➔ Investing
Sure you can do it, but sometimes it just isn't worth all the aggravation...and besides things can happen that really upset your applecart...... in your example: suppose ABC company goes to $ 3.50 or $3.75 after you sold it and went looking for 10 more cents on company DEF? ...and besides that...DEF ( or ABC for that matter) could lose 10 cents...Do you sell at $ 2.90 ? wait for an upturn? sell at $ 2.75 ? Pay the trade commission...AND THEN the damn DEF goes to $ 3.90 !!
You better have some other stable holdings to balance out the "get rich quick " scheme.
Think more along the lines of 3 to 6 months as "short-term"...
or set a profit goal; 25%-35% ..then sell off half ( or all)...you'll end up picking better stocks when you know they've got to have some legs....
BUT...who knows? that's what makes a " market": buyers, sellers, holders, traders
2007-02-07 18:00:28 · answer #1 · answered by jebediabartlett 6 · 0⤊ 0⤋
Yes, this is Day Trading....Brokerage houses do it all the time and make millions,
But in your senerio of winning 50 times, how many times do you plan on losing, and how much each time?
You see brokerages have extensive research depts, they have inside knowledge of the players in the companies and their track records for hyping stock, they hear the news and rumours about the stocks , long before it filters to the public.
So what makes you think you can outguess the market. Just think about it, that is all I ask.
2007-02-07 17:43:23 · answer #2 · answered by bob shark 7 · 0⤊ 0⤋
This was done previously on the go go days of the stock market. These days you try to do that and you'll lose a lot of money and a lot of time
2007-02-07 16:58:36 · answer #3 · answered by Ruben G 2 · 0⤊ 0⤋
Hey - the do it but with much larger somes of money for it to be worhwhile not that you cant do with small amounts- your best bet might be options instead which require much less invesment but can give really great returns.
Hope This Helps
Housebuz.com
2007-02-07 15:23:11 · answer #4 · answered by Paul L 1 · 0⤊ 0⤋