There are a couple of limitations. You can't sell a stock you just bought the same day or day before where the transaction hasn't been settled yet, unless you also have cash in your account to cover it. In other words, if you buy a stock for $1,000 and sell for $2,000 before the first transaction is settled, then you need $1,000 in cash to cover the first transaction. Also, your example involves penny stocks, which are usually very thinly traded. You will need to find some sucker to buy your stock at 0.2. Easier said than done.

You could apply this example with a real, decent stock. Penny stocks are a losing proposition. You may as well take the $1,000 and put it on red at the roulette table. Your odds are better.

Except that it will never happen...

You can only SELL your shares at 0.2 cents if there is someone to BUY them, which (because they are penny stocks) there likely will not be...what drives the price of those "sub-penny" stocks up and down is the owners of the COMPANY talking folks like you into buying the shares at 0.2 cents then offering you 0.1 cents to "take them off your hands" when you cannot find a buyer...

What you are doing is gambling, not investing.

Take that $1000. to a casino for a fun filled weekend. Eat good food, enjoy your favorite drinks and G A M B L E !!

By Sunday night you will probably have the same amount of money as after a few "penny stock" trades. (meaning: NONE) But you will have had a great time! Not so much from buying and losing on penny stocks.

Or lottery tickets, if you hate crowds.

Let's say I save up $1040 ($40 being for the $20 buy and sell per trade fee)

And I purchase $1000 worth of a stock that is 0.1 cents a share, it reaches 0.2 cents a share. Would I then be able to sell it and pull in my the returns? wait a wait then do the same? is this legal it sounds like the normal thing to do a basic buy and sell of a stock right? just making sure