QUOTE(vergeofcollapse @ May 9 2020, 03:10 PM)
Example:
On Tuesday, you bought 100 unit of RM1.00 stock, that's RM100. You sold at RM1.05, so you made RM105-RM100 = RM5
Then you decided to buy again at RM1.10, 100 units. And then proceeded to sell at RM1.15, so you made RM115-RM110 = RM5
So you thougt to yourself, hey I just made RM10, not bad
However, since you did this within single trading day, herein "intraday",
so the total bought price will become (100unit xRM1.00 + 100 unit x RM1.10) = RM210/200 = RM1.05
and the total sell price will become (100unit xRM1.10 + 100 unitsxRM1.15) = RM225/200 = RM1.125
So your total gain = 100unit x (RM1.125-RM1.05) = RM7.5
The above example excludes the transaction fee which I don't include here to avoid confusion. But you get the whole picture. You can repeat the buy/sell as many times you want to by using intraday-trading, however the realized profit will still base on the total buy/sell price.
The problem is not at all related to this explanation. I am very well-versed on the stock market. Thank for you for trying to clarify things though On Tuesday, you bought 100 unit of RM1.00 stock, that's RM100. You sold at RM1.05, so you made RM105-RM100 = RM5
Then you decided to buy again at RM1.10, 100 units. And then proceeded to sell at RM1.15, so you made RM115-RM110 = RM5
So you thougt to yourself, hey I just made RM10, not bad
However, since you did this within single trading day, herein "intraday",
so the total bought price will become (100unit xRM1.00 + 100 unit x RM1.10) = RM210/200 = RM1.05
and the total sell price will become (100unit xRM1.10 + 100 unitsxRM1.15) = RM225/200 = RM1.125
So your total gain = 100unit x (RM1.125-RM1.05) = RM7.5
The above example excludes the transaction fee which I don't include here to avoid confusion. But you get the whole picture. You can repeat the buy/sell as many times you want to by using intraday-trading, however the realized profit will still base on the total buy/sell price.
May 9 2020, 05:23 PM

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