9 Basic Questions About Stocks From New Investors
By Jason McIntosh | Published 15 November 2022
The stock market can be confusing to many new investors. But it doesn’t need to be. Just knowing the answers to some basic stock market questions can help build your confidence. This article reviews 9 of the most frequently asked questions from people starting out in the stock market.
Can buy and sell stock same day?
Yes, you can buy and sell stock on the same day. In fact, many investors do this in order to take advantage of short-term price changes. However, there are a few things to keep in mind before you start trading stocks.
First, you need to have a good understanding of the stock market and how it works. Doing some research and familiarizing yourself with the different types of stocks will help you make wiser investment decisions.
Second, remember that timing is everything when it comes to buying and selling stocks. You need to be aware of market conditions and know when is the best time to buy or sell certain stocks.
Lastly, don’t forget that fees and commissions can eat into your profits
Can I buy and sell stocks online?
Yes, you can buy and sell stocks online. In order to do so, you’ll need to set up an account with a stockbroker. There are many different brokerages out there, so it’s important to do your research before choosing one.
Once you’ve opened an account with a broker, you’ll need to deposit some money into it. This is known as your “account balance”. Once your account is funded, you can then begin buying and selling shares.
This site can help you compare brokers: https://www.canstar.com.au/online-trading/
Remember: always consult with a financial advisor before making any investment decisions!
Can I sell stock at a loss and buy back?
Yes, you can sell stock at a loss and buy back. When you sell a stock at a loss, you can use that money to buy the same or a different stock. If you sell the stock for less than you paid for it, then you have incurred a capital loss. You can generally use this capital loss to offset any capital gains that you have earned in the same year. For example, if you have made $2,000 in capital gains and $1,000 in capital losses, then your net capital gain would be $1,000.
If your losses are more than your gains, then you can carry the excess over to future tax years. Make sure you check with your accountant about your personal situation.
Can you buy back stocks after selling at a gain?
You can certainly buy and sell shares on the open market. Whether you’ll be able to buy back the same number of shares you sold at a gain is difficult to predict and will depend on a number of factors, including the current stock price and your available funds.
Generally speaking, it’s not advisable to try to time the market by buying and selling stocks in quick succession (unless you have experience in short-term trading). Instead, try to develop a medium to longer-term investment strategy that fits your personal risk tolerance and financial goals.
That said, if you do decide to buy and sell shares frequently, make sure you’re using a reputable online broker that offers competitive rates and good customer service.
Can you sell stock immediately after buying?
Yes, you can sell a stock immediately after buying it. This will incur brokerage cost, as well as the risk of receiving a lower price. If you’re a day trader, additional rules may apply. The Financial Industry Regulation Authority (FINRA) place specific restrictions on day traders. Your broker may also place restrictions on the number of times you can buy and sell the same stock in a single day.
Is it risky to buy and sell a stock in the same day?
It all depends on how you do it. If you’re buying and selling shares of the same stock within the same day, that’s called day trading, and it can be risky. Day traders are trying to profit off of short-term changes in the market, so they are more prone to getting caught up in the daily volatility.
However, if you do your research, learn a strategy, and have the discipline to follow it, there is also the potential to make a lot of money day trading. Some professional traders make a living from day trading. It largely depends on how comfortable you are with risk and whether you have the time to monitoring the markets closely.
How do you buy and sell stocks?
There are a few different ways to buy and sell stocks. The most important thing is to make sure that you understand the process and the risks involved before making any decisions.
The most common way to buy shares is through a broker. A broker is someone who buys and sells stocks on behalf of investors, they can also provide advice and guidance. When you use a broker, you will need to open an account with them and deposit money into it. Once you have done this, you can then start buying and selling shares.
How does buying and selling stocks work?
When you buy shares of stock, you are buying partial ownership in a public company. You become a shareholder, and are now entitled to a portion of that company’s profits (if any) and have a say in how the company is run. To buy shares, you must contact a broker who will execute the trade on your behalf.
Selling works in pretty much the opposite fashion. If you own shares and would like to sell them, you again must contact your broker who will then sell them on the market for you. Once the trade is executed, the shares are transferred from your account to the buyer’s account.
How to buy and sell stocks in Australia?
There are a few ways to buy and sell stocks in Australia. The most common way is through a stockbroker. You can find a list of stockbrokers on the Australian Securities Exchange website. Some well-known online share trading platforms in Australia are CommSec, Selfwealth, nabtrade, and IG.
Companies may also buy and sell shares directly to or from the public. This is typically done via a prospectus — a document the explains important details about the offer. There will often be a supporting broker to help facilitate the transaction.
What to know strategies the pros use to buy and sell shares?
Learn how to identify some of the best stocks to buy now in this free video training. You’ll learn a complete stock trading strategy for buying and selling shares with confidence. I’ll also share real life examples to help you apply the knowledge and build a profitable share portfolio.
Jason McIntosh | Founder, Motion Trader
Jason’s professional trading career began over 3 decades ago. He’s a founder of two stock advisor firms, a listed funds management business, and has helped thousands of investors navigate the stock market. Click here to read Jason’s incredible story of, at age 20, sitting alongside some of the world’s greatest traders (and the life changing experience that came with that).
I'm Jason McIntosh, the creator of Motion Trader. My career began in 1991 on the trading floor at Bankers Trust. Nowadays, I trade my own systems from home in Sydney.
Motion Trader is for investors who value robust analysis, data driven entry and exit signals, commentary, and education. I use engineered algorithms to identify when to buy and sell ASX stocks. No biases or guesswork, just data driven signals.