Is it allowed to buy and sell a stock in same day in the US stock market?

Question

i am new in the american stock market and my capital is around $10,000.

Answer 1

Yes.

There is, however, one caveat. There are special rules for "pattern day traders" that, among other things, require a minimum account balance of $25,000.

As I understand it, if you buy and sell a stock in the same time too often, usually 4 times in 5 business days, you will be considered a pattern day trader.

See

http://en.wikipedia.org/wiki/Pattern_day_trader

for more information. Check with your broker to be sure if you think you might even be close to being a pattern day trader.

Answer 2

Yes, it is allowed. Caution is advised. Communicate your desires to the brokerage company that you want to use to make sure they can handle your orders quickly and correctly.

Just be careful not to enter a SELL order until you have confirmed on line that you have bought the stock you are selling. Otherwise, you may have to buy it at a higher price in order to sell it and deliver what you sold.

Answer 3

yes, you can buy and sell in the same day. Watch out for transaction costs though. They will erode your profits. "Day traders", as they are referred to, take advantage of the daily volatility of common stocks' prices.

Answer 4

yes. This is commonly known as Day Trading.

Most brokerages have day trading limits and conditions, so find out the information before you start trading.

Answer 5

yes you can. you can buy and sell the same shares all day long if you want to.

Answer 6

Yes.

Answer 7

You can do that but if you have a cash account you have to have cleared funds for a trade.

Answer 8

yes

Answer 9

absolutely, this is what most day traders do...