>>1148575
In theory that would work, but you have to pay a transaction fee in most places so the profit you make has to be greater than the transaction fee or you'll be loosing money on each trade

>>1148575
if you always made profitable trades, yes, you could do it. the reality is that that is impossible.

the new money comes from new investors and people willing to pay more for a growing investment

>>1148575
The picture hurts me, do they even know how to add. $20 -$20 - $30 + $40 = -$10

>where is that money coming from.

You do realise there is someone on the other side of the table selling and buying the stock to and from you.

>>1148603
(-$20+$30) (-$20- -$30 +$40)

>>1148603
I guess the troll faces didn't tip you off

>>1148605
So if they buy at 2c and it goes down to 1c, that's where the money is coming from, right?

>>1148631
yes, retard, its not magic

>>1148649
But say it gets to the point where I have 500 million and I want to double it one last time, I buy in at 1c and then someone buys $1 worth at 2c sending the price up to 2c. I sell at 2c and somehow get 1 billion. How does that work when there's only 500 million and one dollar in the market?

>>1148652
>being this retarded

>>1148656
>I'm retarded
Literally the first two words I opened the thread with, I wasn't kidding about that.

I thought the stock price was the last price someone paid for that stock, regardless of how much it was. Am I wrong about that?

>>1148652
>what is volume
>what is supply and demand
You would have to find someone willing to buy a million shares of stock from you at 2c a share.

I'm trying to keep this simple so I can understand it, obviously there aren't any stocks that oscillate between 1c and 2c but it's an exaggeration to help me get my mind around it.

What if the stock was $29 each, someone puts $120 in and buys 4 at a price of $30 each, the stock jumps to $30, right? So then the guy who's been holding onto 10000 shares since it was $15 decides to cash out at $30. He gets $300,000, is that right?

>>1148667
Again you are not considering something called volume. There is only a certain amount of people willing to buy a certain amount at a certain price. Buyers just dont materialize out of thin air.

>>1148667
Also, there are stocks that oscillate between 1 and 2c. They are called penny stocks and usually have low volume.

>>1148671
I think I'm starting to get it now. If something had a volume of $100, you couldn't go over that. That's the total amount of cash in that particular stock for the last 24 hours.

So if the volume was $100,000 that guy that bought 4 shares would take it to $100,120. And the guy with 10000 shares couldn't cash out until the volume was $300,000 because nobody would buy it? If that guy cashes out does that send the volume to $0?

I need to read more about this shit.

>>1148684
You're starting to get it but its a little more complicated than that. You have different volume at different prices. These are called "buy/sell orders". They sit there until they get fulfilled. For example, you can want to buy 1,000 shares at $5 each but there has to be at least the same amount of volume (i.e. someone willing to sell 1,000 shares at $5 each) on the other end. If there is more demand (people wanting to buy) than supply the price goes up. If there is more supply (people wanting to sell) than demand the price goes down. There is a ton more to it but those are the basics.

>>1148652
the current market cap of a stock isn't a giant pool of money. it's just an estimate - how many units there are multiplied by the last transaction price.

in reality, if you tried to sell lots of stock suddenly, the price would fall as the buy orders got cleaned out. on the other hand, if you tried to buy a lot suddenly, the price would rise as the sell orders got cleared out.