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Spearhead, thank for your comments, you seem to understand what I'm asking about. I'm not advocating using this strategy to make money, just to understand how and why prices move. The question remains, however. Why is it a negative result over the long run if you play my proposed game? The...

Thanks for the reply. I am mainly curious about the silly, academic strategy I outlined above above, under the conditions of perfect liquidity, market price buy and sell orders, and no commissions. I'm not sure if the bid/ask spread comes into play here. On average, whatever the trade...

Hi all. This is my first post. There seems to be a fair amount of evidence that intraday stock prices move (mostly) randomly on short time scales. My question then is what if you were a day trader and you randomly picked a buy point, and then a sell point every day, for a given stock...