You can "guess" with blue chip stocks, since they're generally profitable over the long-run, but if you're looking for short-term gains, that needs a whole different set of skills that you need to acquire through lots and lots of experience, and trial and error. This takes time, and a lot of losses.
Beginner investors should never go straight to day trading. That's just grounds for losing money. And a bigger problem is the whole idea of "it's not a big deal"; you think that, because you lose a thousand or two of your million, it doesn't mean a whole lot. It does.
Don't get into day trading until you know enough about the stock market. Trust me on this one.
If you want to turn the $1m into $1/2m then go ahead.
What do you know about day trading? Er, let me guess--zilch.
You really need to know what is the fair value of a stock. Let's say the fair value is $10 and the shares are trading around $15,$17, $15, $14 etc. You think $14 is cheap and buy, then some news comes out that makes the stock $10. It is not going to be $14 for a long long time.
There is a lot wrong with your plan. It doesn't matter if you have $1 million or $10,000, day trading is a rough way to make money. Your assumption is ludicrous. How often do you think a stock goes up 1.4% in a day? And if it goes down 1.4% there is no guarantee that it will "inevitably" rise. Lastly, every trade you make will trigger a tax event. At the end of the year, someone is going to have to sort through all the trades that were made, and if you were fortunate enough to make a profit, it will be taxed at your marginal tax rate so kiss 28% or 33% of it goodbye.
Most importantly the price doesn't inevitably rise back up. It may rise back up, it may continue to drop. You are putting your money at risk and hoping to be compensated for putting your money at risk. There is nothing inevitable about it.
The on the other part of your strategy. you buy your shares go up 1.48% (strange number to choose in your hypothetical...). what is your rationale for selling and "coming back with "14,800 more"? you had shares at 100. you sold them at 101.48, you sell them and buy what?
Really, if you buy something and it doubles over some period of time, there really is no reason why it shouldn't double again. In the jargon of the industry... share prices are assumed to be log-normally distributed.
So buy stuff that you think will provide a good return for its risk, and hold it. There is nothing to be gained in jumping out and jumping back in again, except for increased risk and missed opportunities.
These kind of situations comes most of the time when you are following the traditional methods of trading. Now a days, technology can help a lot in stock trading, especially in equity segment, that reduce the risk factor and if you facing these kind of situations these technologies can also help you. After facing huge loss I have started using Automated trading systems and now I have start earning on a daily basis. Be smart and earn with the help of the latest market trends.
You cannot "day trade" in one stock with a MILLION dollars, silly goose.....every trade involves a BUYER and a SELLER.....to buy a MILLION DOLLARS' worth of one stock that you believed was going to rise, there would need to be a MILLION DOLLARS' worth of shares for sale by investors who were sure enough it was going to FALL to sell them to you!
On a completely different topic....if your family have a million bucks "to invest" then why not buy a home with it instead of staying here? http://www.whatismyipaddress.com
Do not take more than 5% for Day Trading.and 25% in long term investment is stock and the rest keep in a Bank
A good way to practice your stock market skills is something I use everyday, its a Virtual Stock Exchange game. It is the exact same thing as the real life stock market, the only difference is your playing a game makes you use fake money.
I use it to practice my skills, and to try new techniques. And the game is free as well.
http://www.marketwatch.com/game/marketwo... is the link to my game
or go to http://www.marketwatch.com/game to find, or create games you wish to play in. Everything is real time. Meaning you cant buy or sell until the NY market opens in the morning
If you had $1 million to invest, you wouldn't be asking for investment advice here.
Your fallacy is in the following two words.
"inevitably rose" There is no "inevitably" in stocks or other equities.
My family has 1 million dollars in savings and we're looking to grow it. Say I were to put all of it into an equity and over the period of the day it goes up 1.48%. Would that mean I could sell the shares and come back with $14,800 more? And if the equity dipped -1.48% couldn't I just leave the money in until the price inevitably rose back up?
if you really had this much money you'd hire a manager
Yes if it goes up. You could also lose it.
