The system is I have 5000 to start and have been playing virtual stock (day-trading) for about a year. I return generally 10-20% per day. So set-up a cash account where I utilize on day 1 only 1000 of the 5000 in the account.
ok.... so I make a buy 100 shares of a stock at 10.00 per share. It goes up to 10.50 per share and I sell..... so now I have 1050 showing available for use, or do I in reality? In real stock trading isn't the reconciliation of the account in limbo for 3 days until it is settled before I can make another buy or can I immediately trade on that same day?
In all my past virtual stock trading games I generally would make on average 100-120 trades per day. Of these 80% make profit enough to cover the charge per trade (10.00) and still make money, 10% on average I sell with .02% in loss and the other 10% loss are still under .2%
However, in the virtual games/training I can make unlimited buys and sells until the money is basically gone that day. In real life I make a buy 1000, I make a sell 1050.... can I now make an immediate buy or do I have to wait three days before making another buy? As long as I show a cash balance after buy and sell as tracked by the trading house, shouldn't I be able to make unlimited buys and sells throughout the day , as long as it is a cash account and not on margin?