Wednesday, June 1st, 2016

Is selling a stock then buying the same stock back at a lower price considered day trading?

I Understand That Then selling stock buying it for a high price in the Same Day trade is considered day. What about selling a stock on a previous day Bought for a profit, Then buying back stock at the Same a lower price. Would That Be Considered day trading or not?

Comments

3 Responses to “Is selling a stock then buying the same stock back at a lower price considered day trading?”
  1. muncie birder says:

    If you do it only once, you do not have to worry. You might however have to deal with the settlement period of 3 days if you do not have a margin account.

  2. itsjunglepat says:

    Daytrades are all about time frame, not about price. As the name suggests, daytrading refers to buying and selling the same stock within the same day.
    The SEC has a guidline which defines what they call a “pattern daytrader”
    There can be consequences and limitations on “pattern daytraders”, but when done according to standards, some find it a lucrative practice.

  3. money stock says:

    Depending on the basis on which a stock purchase was predicated, the trader should be able to estimate a target price that the stock can achieve based on what is then known about the specific stock and other related situations such as the overall performance of the stock’s sector and the general market, and perhaps, the chart pattern exhibited by the stock’s trading to date.

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