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It'll dead cat bounce a few times, the smart money buys it on an up day and sells before noon.
by MintelIE 6y ago
It'll dead cat bounce a few times, the smart money buys it on an up day and sells before noon.
- aparsons 6y agoIs that even legal? I thought you had to hold stocks for 3 days for transactions to settle?
- aparsons 6y agoNot sure why an honest question is getting downvoted, but you do you, HN.
- deleted 6y ago[deleted]
- snazz 6y agoHuh? Day-trading is a thing. Is this stock somehow special?
- RandomBacon 6y agoYou only have to wait three days for it to settle if you want to use those funds to buy a different stock.
- aparsons 6y agoThanks for explaining. Does this mean that each time a “day trader” makes a sale of $N, the minimum cash they hold over the next 3 days must be at least $N? Or does the exchange not make the cash available for 3 days? Also, can the same stock be re-bought within 3 days? I’ve seen a lot if different takes on these issues, and an unsure what to believe.
- jnwatson 6y agoWhen you sign up for a brokerage account, you select whether you want a “cash” or “margin” account. In a margin account, the brokerage essentially loans you the money until the sale clears. Day traders use margin accounts. You can indeed buy the same stock back, but it has tax implications. Look up “wash rules”.
- aparsons 6y agoThanks for explaining
- arthurcolle 6y agoonly in a cash account