During a trading day can you buy a stock and an hour later sell the same stock? Is this what day traders do?

8 Answers

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   Narach I on Feb 03, 2011 Reply

   Yes, that is exactly what day traders do. In fact, on occasion they also sell stocks they do not own and buy them back later in the day; probably at a lower price.

   Be rest assured that this action is speculative in nature; and is therefore not considered to be investment.

   Sincerely,

   Akash
   http://www.narachinvestment.com
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   Howard L on Feb 03, 2011 Reply

   You don’t have to wait an hour. 30 seconds is also OK. As the other poster pointed out, you don’t even have to own the stock to sell it as long as you have a valid account with the brokerage.

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   ABDUL RASHID on Feb 03, 2011 Reply

   yes but always set stop loss.
   you may not have connectivity then you are not in control

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   matthew on Feb 03, 2011 Reply

   I day trade and yes you can, thats exactly whats done. in fact if the stock or equity is liquid enough you can sell it back in seconds, depending on how fast your broker or, the electronic broker your using.

   ive used light speed which is a day trading program.
   trade station for awhile.

   but you want to wait until it reaches an exit point thats suitable for you, would be pointless to sell it and it hasnt had time to move up or down.

   hope this helps

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   Anas on Feb 03, 2011 Reply

   Day trader’s buy or sell stock to start with and cover the order (sell or buy respectively) later, but within the same day. Many brokers provide a facility for margin trading as well. Suppose you want to buy 25 stocks of Reliance (price Rs.1800) and sell it within the same day later on. The decision is based on a speculation that the price is going to rise later in the day. The total amount you would require is 1800*25 = 45000. However broking houses allow you to trade this by having margin as little as 5% (2250). Later, you can sell 25 stocks and profit from the price difference. Brokerage houses charge a percentage as brokerage. Be careful with this because, when you gain you get a gain minus the brokerage charges, but when you lose money, brokerage charges extends the loss.

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   d10 on Feb 04, 2011 Reply

   1. yes, we can.
   2. yes, they usually close positions before the market closed.

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   Jason B on Feb 04, 2011 Reply

   yes

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   raysor on Feb 04, 2011 Reply

   Yes, of course. You don’t even have to wait that long.

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