Buying a share and selling next day

[jakpet]

I have just retired and would like to trade on the stock market. In the past I have bought shares mainly for their dividend, but now I would like to maybe create an income stream and am wondering how you can buy a share on one day and sell it the next day when settlement is always 5 days after purchase.

I realise this is probably a very silly question but would appreciate it if someone could take the time to help me.

regards Jacky

 

[Gringotts Bank]

Just enter your sell order and the broker will take care of it. It will go through ok.

 

[McLovin]

FYI, settlement has been T+3 since cheques started taking 3 days to clear, I guess about 10-12 years ago.

 

[jakpet]

thank you both -
gringotts bank does that work if i am using Etrade Pro? Jacky

 

[McLovin]

thank you both -
gringotts bank does that work if i am using Etrade Pro? Jacky

It works with any broker. Some, like Commsec, don't even need the cash until settlement so you can trade without putting any cash up, if that's your thing.

 

[blue0810]

Be careful some brokers it could be treated as a short if you don’t hold the amount of shares that are you selling

 

[PinguPingu]

I'll admit I've done the T+3 thing with commsec (granted there were collateral shares to cover me in case it all blew up in my face) but it's a very silly thing to do. It's just so tempting when you're so sure of a winning trade but lack the funds to make any sought of reasonable profit, as is the case with people my age (early 20's). Dumb thing to do though, with things like trading halts that'll screw you.

 

[tech/a]

You can buy and sell in the time it takes to click the mouse.

 

[ROE]

Be careful some brokers it could be treated as a short if you don’t hold the amount of shares that are you selling

As soon as you buy shares, it is available for you to sell right away.
you don't own it until settlement but it is available for you to sell again on the market..

you can buy at 11am and sell at 11:01am if you want...
shorting only happen when you have not bought the stock and hit the sell order

 

[blue0810]

shorting only happen when you have not bought the stock and hit the sell order

Or happen when by Mistake you buy 100 shares then you sell 200 shares, so 100 shorts .

 

[pixel]

Or happen when by Mistake you buy 100 shares then you sell 200 shares, so 100 shorts .

If you're trading through a "good" broker, i.e. one whose online trading system has a modicum of smarts built-in, you will at least be told that the number of shares you want to sell exceeds your current holdings. And there are many more cross-checks that can be activated. If I were new to online trading, I'd ask my friendly advisor on setup to explain what safeguards their system has and please activate any that protect me from my own butterfingers or ignorance.
(And if they don't have any safeguards, ring somebody else that does.)

 

[blue0810]

If you're trading through a "good" broker, i.e. one whose online trading system has a modicum of smarts built-in, you will at least be told that the number of shares you want to sell exceeds your current holdings. And there are many more cross-checks that can be activated. If I were new to online trading, I'd ask my friendly advisor on setup to explain what safeguards their system has and please activate any that protect me from my own butterfingers or ignorance.
(And if they don't have any safeguards, ring somebody else that does.)

BTW Comsuck, etrade, Westpac you will not allow to short shares even if you want to.

 

[jakpet]

Thank you all very much. Very kind of you all to take the time to answer me. Will carry on with the research for a bit yet. Thanks Jacky