Is it possible to repeatedly buy and sell the same stock?
Asked 4 years ago
If I understand this correctly, this is known as day trading? Surely, if we could keep doing that, everyone would be rich by now? It seems like a great strategy. It sounds too good to be true, is there a catch?
Andrew Moran
Thursday, August 12, 2021
Unfortunately, retail investors are not allowed to buy and sell a stock during the same trading session any more than four times during a period of five business days.
This is known as the day trader rule.
That said, if you want to start day trading and buy and sell the same stock repeatedly, you will need more than $25,000 in your account. Once you meet this threshold, you can buy and sell without any limits.
In the end, this is not a sound strategy because even day traders rarely buy and sell the same stock multiple times a day. Day traders tend to monitor the stock in the morning and then place a limit order on the price and amount they wish to buy or sell.
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