Is this type of trading illegal?

[Tommy92l]

Forgive me for my ignorance but this is something I've wondered. I've asked big stock guys on Youtube this question and while they said it was legal, they did not support the concept at all.

So take day traders, especially ones with penny stocks.

I've noticed that (at least through my little "RobinHood App") that when the market opens, on the stocks I've been following, at around 9:50-10:00, there is a massive dip, and after that they simply skyrocket, peaking at around 11:00.

Now keep in mind, I've only been reading about this for a short while, but I've noticed that pattern.

Now take Berkshire Hathaway. It costs roughly 190K.

Using today as an example

Why couldn't I buy a share of that in the market low (12:25ish)at $190,020 and sell it at 2:25 for $191,733

Like I said, I know I am oversimplifying but my point is. Taking a HUGE stock, and feeding off of the small fluctuations of it, which are massive to me because it comes close to 1700 bucks.

Granted, I know it's not easy to just have 200K sitting around, but even if you did this a few times a month, that could seriously help you out financially.

Please, go easy on me, it's just something that struck me as fascinating, as I'm just getting into reading about stocks and the market and this is all so new!

Is something like this illegal ? Can you abuse the hell out of a stock like this, or is it fair game?

Thanks

 

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[MJ DeMarco]

You're describing day trading. And it's legal. But not as easy or simple as you describe it.

 

[Tommy92l]

You're describing day trading. And it's legal. But not as easy or simple as you describe it.

I see. I figured that maybe a company would get ticket off with someone milking profits like this.

It seems that most day traders (the ones I watch) have a propensity towards investing in the smaller penny stocks.

I was just curious as to why people wouldn't aim for bigger stocks with smaller fluctuations??

 

[jpmartin]

I was just curious as to why people wouldn't aim for bigger stocks with smaller fluctuations??

Percentages are small... but trading the first hour of the market is known as the Amateur Hour for a reason.

 

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[Tommy92l]

Percentages are small... but trading the first hour of the market is known as the Amateur Hour for a reason.

Well, I'm an amateur, if that, so I suppose it makes sense .

Out of curiosity, why was this moved to "The Landfill" ?

It was a genuine question