Can you make money in the stock market buying and selling the same stock, but not all your shares; just buying at the lowest price and sell it at a higher price like the examples of recent trades:

I am new to the market and want to see if anyone uses this technique.

  • 4
    What alternative way of making money do you have in mind? It’s not like you can buy one stock and then sell a different one — if you buy a stock, it can only ever be with the intention of eventually selling it.
    – Mike Scott
    Aug 1 '20 at 6:41
  • @Mke Scott than the buy and hold let grow with dividends natural growth of a strong company.
    – John Di
    Aug 1 '20 at 8:13
  • The stock will still be sold eventually. Even if you keep it until you die, whoever inherits it will either sell it or leave it to someone else, and in the end it will be sold.
    – Mike Scott
    Aug 1 '20 at 9:09
  • Just curious: What is the tool/service/platform shown in the picture? Is it an Excel spreadsheet you made?
    – Flux
    Aug 1 '20 at 13:49
  • @Flux Yes, it is an Excel spreadsheet that I created for this particle trading technique. Excel has a feature that lets you get updates in the Data tab. Try it you will like it. :)
    – John Di
    Aug 1 '20 at 22:46

Yes of course. If you sell when you've made more than your brokerage (buy & sell) you win, and of course you can't (generally) sell that which you haven't bought first. Timing the market is literally how speculation works. But consider that you need to ask yourself

a) So when should I sell? (obviously when it's lower than you bought)

b) Is there any more money on the table (will it go up or down from here)

c) Will it go up or down after you sell some? (should I buy more soon, leave it to go down more, or just sell the lot)

So basically you need to guess the market or do tons of research that might back up your hunch on timing.

If anyone knew the market in the future this would be a lot easier! Of course nobody does know so it's going to involve an element of risk and your reward will be the inverse of that in an efficient market.

I would say though, focusing on a small number of stocks may increase your likelihood of your research working for you as you become sensitive to things that matter to a specific stock, but you won't be alone in that. Now having said that, you may get great at watching and working a 5% swing in a particular stock but missing the opportunity of a 10% growth elsewhere.

If you're a beginner, you're as likely to lose money rather than make it so I'd go with a long term buy & hold on an ETF where the fund is something you believe in. But that's not an answer to your question.

  • @Bob Baeker Yes, I know it is a very unique period one of the main reasons I got in now. You are absolutely right that immediate success can be the worse thing for a beginner hence that is the reason for my question. Just looking to see what and if the some seasoned professionals tried this in past and what was the outcome in the past.
    – John Di
    Aug 1 '20 at 20:28
  • Comments are not for extended discussion; this conversation has been moved to chat.
    – JohnFx
    Dec 1 '20 at 4:56

Yes, you can make money from buying and selling the same stock.

If it drops after you sell some/all of your shares, you can buy them back.

If it rises after you buy some/all of your shares, you can sell them again.

Where this becomes problematic is if:

  • Price collapses and stays down so you either become a buy and holder waiting for recovery or you average down.

  • Price zooms up after selling some shares and you'll either have to buy more at the much higher price than you sold the last batch of shares, become a holder or sell all of your shares and move on to another stock.

I've traded some stocks for months like this. I once wrote short puts on a gold stock at adjacent strike prices for over a year with no losses. But sooner or later the party comes to an end. This strategy works only for as long as the stock cooperates.

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