This last week, I used $1000 to buy 1million shares each of 10 different penny stocks at .0001 a share (10million shares), I then set it up to automatically sell each of the stocks when they reached .0002; I ended up making just over $4,600.

When I tried to do it again on Tuesday, I got a warning message stating that if I didn't hold the stock for longer than a certain time period, my account would be blocked by the FCC for 90-days.

So now I'm wondering, do I need to hold the stock for a certain time period? How soon can I use the profit from the sale to buy twice as many shares?

I want to continue down this path until I reach $4.2 million which I figure I can do in about 30 days but not if there is some unwritten rule which prevents me from flipping stock.

If there isn't a rule, I could easily do this every other day until I reach $1billion; Taxes would be what, about $500 million?

Sounds pretty foolproof to me. I don't see how this could possibly fail.

Just buy stocks, wait a few days for them to double, then sell them. I can't figure out why no one has thought of this before.

When this blows up in your face and wipes out your account -- when, not if -- you'll understand why these rules are in place.

Even though you're on the path to a zero account balance, since you questioned the rules, you might as well know what you're doing wrong. Stock trades take three trading days to settle. That means when you sell on Monday, the funds are not released to you until Thursday. Usually, you'll be allowed to buy another position with the unsettled funds (before Thursday), but if you try to sell the positions bought with unsettled funds before the funds clear, you'll run afoul of the 'free ride' provisions of the Federal Reserve's Regulation T rules (the Fed, not the FCC, unless you illegally broadcast your trades or something), and Reg T is where the 90-day suspension comes from.

The way to avoid that settlement requirement will just cause you to lose everything you own rather than just what's in your account, so I'm not going to detail that.

Oh, and don't worry about the taxes. Just keep working your magic system until you have $15 trillion, and you can buy all of the outstanding US Treasury debt. Then you can call up Treasury Secretary Geithner, and say, "Timmy, my boy, you owe me $15 trillion. I don't think I should have to pay taxes anymore." I'm sure he'll understand, he didn't wanna pay them either.

Interesting. Are you buying these stocks in the Korean Stock Exchange? Or are you buying these in the US? If it's in the US, are you buying pink sheets over-the-counter? If so, how and where? Also, what brokerage are you using?

I'm not asking because I want to do this, by the way. I think it's an extremely bad idea, and if you traded in the US, it's most likely the settlement rule, where you can't buy again until your money settles after 3 business days. Still, I am curious just the same.

Congrats on the gain. If I were you, I would take the money and run.

I don't understand what the FCC has to do with any of this?

Penny stocks sometimes "explode" like this - usually by going down but sometimes by going up. A major problem with penny stocks, besides the huge risk and volatility is that most brokers charge a small fee per share in addition to the commission for large lots. If you buy over 5000 shares you might pay 2 cents a share. That would completely eat up any profit in most cases.

I would bet that the someone is trying to do a pump-and-dump scam. He tells you he made all kinds on money on a stock, you want to do the same so you buy it...a bunch of other people on the forums he spammed do the same thing and ... guess what, those buyers make the stock go up. The scammer and his friends dump their shares for a profit and the suckers are left with nothing.

Don't fall for it.

I would point out that, in addition to the settlement issues, if you do this a few times you could be labeled a "pattern day trader." There is nothing inherently wrong with that but it will subject you to additional regulations including having to maintain a $25000 minimum account equity at all times being subjected to withdrawal restrictions.