| Is this a smart investing strategy for stocks |
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Elmira Nancy
Preferred Member
Cash: $ 26.90
Posts: 136
Joined: 01 Dec 2009
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| Is this a smart investing strategy for stocks |
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If i look up the day's biggest decliners and then choose from those the ones that are at least 5% under their yearly average, and then set them to sell automatically once they gain 5% (essentially only having going back to the average) is this a good strategy? I know that no stock investment is safe but does this sound fairly conservative or not?
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Wed Mar 10, 2010 2:02 am |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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No, it's not conservative at all. It just generates a lot of commissions for your broker. And there are other reasons I don't have time to go into now. But if it were that simple, and don't for a minute think that no one else has thought of it, then why isn't everyone doing it, and if everyone does it, then no stock would ever go down more than 5% and none go up more than 5%.
~Tim~
Eye Candy : Why Whimsy
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Wed Mar 10, 2010 7:17 am |
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