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Day trading on the stock market

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Hi All,

Just a quick question.

I have 54k in the bank and looking to put it into some good use...

What I am looking to do is buy and sell shares on the same day. So lets look at the following example....

Lets imagine I was to buy as many of Lloyds banking group shares at 0.67p each. I would be able to buy 80,597 shares. Then on the same day I was to sell them for 0.71p each. I would have made a profit of £3223 (obviously minus trading costs etc)

What would be the downsides of doing such a thing ? and is it possible ?

Thanks,

James
«13

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  • Plus
    Plus Posts: 433 Forumite
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    edited 21 March 2016 at 11:43AM
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    This is like betting on coin tosses:

    At this kind of granularity, you're just betting on noise. The shares could equally go down as go up - the odds are more or less 50/50
    You'll be paying dealing costs and stamp duty (0.5%)

    On average you can't win at the casino because the house takes their cut, and you can't win at this because you'll end up down over the long run due to fees and stamp duty.

    The reason the stock market is a good investment is that it has the tendency to rise, but on the timescales of years not hours. So it's much less foolish to get rich slow than it is to get rich quick.
  • Froggitt
    Froggitt Posts: 5,904 Forumite
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    What Plus says. Plus if the share price goes down 4p, you've lost three grand.

    And even if the price doesn't move, you've probably lost a grand or two on the buy/sell spread.
    illegitimi non carborundum
  • TheTracker
    TheTracker Posts: 1,223 Forumite
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    What a great idea. Go for it!
  • cloud_dog
    cloud_dog Posts: 6,068 Forumite
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    What would be the downsides of doing such a thing ?
    You lose money.
    and is it possible ?
    Yes, its doable.

    The question is.....Why?

    Why do you want to undertake this risky activity?
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • mike88
    mike88 Posts: 573 Forumite
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    It's a daft idea and pipe dream. The downside is that you are likely and probably will lose money. In truth it is an immature thing to do. Let's face it if it was that easy everyone would be doing it.
    Take my advice at your peril.
  • coyrls
    coyrls Posts: 2,438 Forumite
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    Lets imagine I was to buy as many of Lloyds banking group shares at 0.67p each. I would be able to buy 80,597 shares. Then on the same day I was to sell them for 0.71p each. I would have made a profit of £3223 (obviously minus trading costs etc)

    I agree, you could imagine such a thing. I can imagine other, even more exciting, things but it doesn't mean that they are going to happen.
  • Sam_J12
    Sam_J12 Posts: 253 Forumite
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    If the money is important to you then it's a bad idea.

    If you really want to give it a shot, then put aside some money that you are prepared to lose and go for it. Consider it money spent on entertainment rather than an investment.
  • jimjames
    jimjames Posts: 17,678 Forumite
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    cloud_dog wrote: »
    Why do you want to undertake this risky activity?
    Clearly it's the obvious next step up in investment options after having money in savings the bank.


    ... Oh hang on, maybe it's not :)
    Remember the saying: if it looks too good to be true it almost certainly is.
  • cloud_dog
    cloud_dog Posts: 6,068 Forumite
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    jimjames wrote: »
    ... Oh hang on, maybe it's not :)
    Yup.......
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • _CC_
    _CC_ Posts: 362 Forumite
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    65686967.jpg
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