Iāve found answers on this but they were from 2020 threads, so I want to get an up to date answer to what is probably a very common question. Is is allowed to buy shares at some point in the day and then sell them if Iām happy with a gain? I know that doing this multiple times a day can bring a warning based on their duty to protect the user but is once a day for example) ok? I know in UK we arenāt bound by the US Law for day trading (apparently
From old posts) but is this still true?
So essentially if I invested 10k and made Ā£20 and then sold the lot, is it ok to
Then reinvest the next day and take small gains possibly daily. Not saying this is a good approach as I understand selling and making profit means itās a taxed profit which could backfire. Itās just it seems to me it is a valid way of taking some daily gains as long as itās carefully monitored.
No, just one ETF. Iāve tried it in practice and itās a bit hit or miss but o made a bit each day. I do have the luxury of being able to keep an eye on it while I work. Self employed and in a workshop
By liquid I assume you mean one that resolves quick! It sells in seconds normally. Although.. it takes a good 10-15 mins to update each candle? So as soon as I see a rise and it meets my target I sell. It sells in seconds but can be a little different. One day it dropped off about 0.2% by the time I got to it, which was a bit annoying but didnāt show that til I sold. Is that what you mean by liquid? Iāve noticed that highly volatile Stocks are ridiculous! Thatās liquid for sure, but Iām Not going there. Too dangerous if not very tempting. So Iāve learnt to be āon itā around my target. This ETF and I assume most are quite slow to fluctuate. Itās a bit annoying when it then goes up a bit more, but Iāve also seen it drop off so itās worth having your target and stick to it best you can. Am I over analysing this? Thanks for the advice
Yes, liquid is you can buy and sell it quickly without significantly affecting its price. Itās mainly the stocks with high trading volume and the fact if they are listed on a major stock exchange. When you scroll down to the middle of the page, thereās a stats section with the volume, although this does not really make that much of a difference for us, I believe. I read in one of the threads on this forum that most of the trades are OTC here at Trading212 which means trades are settled between the parties and donāt go through the major exchanges so Iām not sure if those volume figures are reflective of that or not. Anyway, I think I digressed a bit.
Best way is for you to just try it with small amounts and see how it goes. There a method to everything. Iām sure youāll develop your own strategy along the way.
