What are the implications of buying and selling same stock repeatedly?
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What are the implications of buying and selling same stock repeatedly?
If you know the dynamics behind rising and falling markets, you can start stock intraday trading. Intraday trading is highly based on price fluctuations. Capturing favourable market fluctuations in a controlled way without becoming greedy is crucial to making money in day-to-day trade. Once you have learned this art, you need to quickly start selecting the best stocks in for your intraday trade.
You need to avoid some mistakes as a novice when doing intraday trading. My brokerage firm ICICI Direct has helped me avoid committing such errors. Likewise, even when the stock price goes down, you will make profits. You can sell the stock first in day trading and buy later, and it is called a shorting a stock. This is precisely what investors were doing (shorting) when the stock market collapsed in March 2020 because of fear of COVID-19. People made lots of money by initially selling shares, and then bought during the day when prices fell significantly.
Intraday trading only includes a Trading Account and a related bank account. But stockbrokers can also provide you with the option of a Demat account so that you can invest in stocks for the long term.
If I quite understand you well, your question is about day trading. Day trading happens in any financial marketplace, but day trading is most common in the stock and foreign exchange markets. Day trading is not necessarily a bad thing; neither is it illegal or unethical. But it is extremely risky and complicated, and a technique that is best employed by a professional day trader. Typically, day traders are highly experienced, well-educated, and well-funded by large financial services institutions. Your broker may not allow day trading based on the type of account you have. For example, if you are a first-time or relatively new investor. Test your trading skills to make sure you’re well prepared so you don’t risk losing your money.