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2016-01-12 20:40:02 Post No. 1038906
Post No. 1038906
This is going to be a REALLY fucking stupid question. I already know that before I'm going into it. But despite all the reading I'm doing I can't really find a good answer to this.
Let's say I have a trading account with 5,000 dollars in it. If i type the ticker symbol for any given stock into Google I can see their graph for 1 Day, 5 Day, etc... Say I picked a random company whose shares are about 20$ each. I buy that morning at 20, and the second that the stock rises in price over .50 I sell all of my shares. Assuming a 50 cent gain (not including fees for trading and such) I'd make 125 dollars that day if that were the only trade I made and I used my entire 5,000.
Likewise, I'd come up with a similar rule that would notify me if the stock were going to drop in a direction in which I'd want to get out and I would sell and minimize losses. Hoping to break even the next day or even the same day if possible on another trade.
What's to prevent myself or somebody else from doing this? I see the graphs for stocks and it seems really fucking easy to make low amounts of money almost nearly guaranteed. I KNOW that it can't be this simple but I'm just wondering why it seems so simple to me.