Can I buy and sell the same stock many times in one day?

I live in California and have never invested in the stock market and have only used simulators. I figured out a method that basically insured me a profit because I am buying a stock and then selling it as soon as it rises, and buying it again for a low price. For example, I buy a stock at $0.770, and then in the next ten minutes it jumps to $0.775, and I sell all my stocks. In another ten minutes it is back at $0.770, so I buy, and repeat.

On the simulator, I have used this method and could make about 10 percent profit a day. For the real stock market, I was wondering if this was possible, legal, and if this has a name.

Investing, Stocks
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May 2018

This is how day-traders make money, doing exactly this!  Most brokerage platforms will charge you a fee per trade however, usually around $5 or more. So unless you are using extremely large sums of money, this type of transaction does not make sense for your average investor.  This will also come with a lot of tax reporting.

Do the math on investing $100,000. You buy about 129,870 shares with $100k at 0.77 per share.  Sell those shares at 0.775, you make about $648 of profit (which doesn't include costs of trade). Less than 1%. Is it worth the risk, transaction cost, time, stress, reporting etc?

June 2018
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