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Chapter 7: Trading the Same Stocks – A Good Idea?

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One interesting strategy that many day-traders use involves trading the same stock over and over again. A person might buy a stock and then sell it the same day but then buy that stock a day later and do it all over again. You might even find some investors that buy and sell a particular stock three or more times a day. This is an interesting strategy that lets people work with stocks that might go in a certain direction. An investor in this situation will try to sell their stock before any reversals happen, but that investor will always watch for when those reversals end and the stock moves back to its original favorable trend.

Is this a good idea? You have the right to trade the same stock many times over in one day if you wish. Before you do this, you have to consider some important points.