Newbie question on scalping and trading

[HungryLion]

Hello guys, first post... I am delving into the world of trading and an absolute beginner, but my ambitions are very high.

I have no expectations about earning a steady income or making lots of money, I am just excited about the journey ... I'd like to confirm if some of my assumptions are correct.

Every stock on the stock exchange fluctuates on a daily, hourly.. minute by minute basis.

Different stocks fluctuate at varying levels of volatility... for examples sake... assume a particular stock is currently at 10 dollars a share.... and it goes up and down swinging between 10 and 11 dollars a share in a 24 hour period.

How often can you buy that stock at $10, and sell the same stock when it reaches $11 dollars... keep the dollar profit... and sell again when it reaches $10?

Would you need some time of Direct Access Trading for fast execution? Rather than going through a broker? Do you get charged per transaction which offsets the 1 dollar profit made? (of course the profit is subject to comission and tax).... are there any regulations preventing you from trading the same stock let's say three times in a day?

 

[MasterOfCoin]

How often can you buy that stock at $10, and sell the same stock when it reaches $11 dollars... keep the dollar profit... and sell again when it reaches $10?
As many times as you like;- bots do this all day long on tiny fractions of price.

Would you need some time of Direct Access Trading for fast execution?
( Rather than going through a broker? )
No, just a good broker with that access.

Do you get charged per transaction which offsets the 1 dollar profit made?
Yes. Costs vary by broker and volume, but this is an often critical factor in determining profit or loss on smaller trades.
(of course the profit is subject to comission and tax)...

. are there any regulations preventing you from trading the same stock let's say three times in a day?
Yes, but this applies only in some jurisdictions and markets.

Expand quote for answers.

 

[HungryLion]

Expand quote for answers.

Many thanks for your reply!

When you say "No, just a good broker with that access." there is still a delay between your communication to the broker in relaying your trades? Or do you mean using the brokers trading platform to execute trades on the fly? Where their platform has DAT access and that. Apologies for being dense.

 

[MasterOfCoin]

... there is still a delay between your communication to the broker in relaying your trades? Or do you mean using the brokers trading platform to execute trades on the fly? Where their platform has DAT access and that. Apologies for being dense.

All good brokerage platforms will offer near instantaneous execution and confirmation of instructions on the fly.
That is, after all, what you are paying them for !

Welcome to T2W.