I started with 10,000 shares in a solid company that I have been following for 4 years. My plan was to hold long for 10 years plus. My average price that I paid per share is more than the current market price this year so I am technically bagholding. I follow this share daily for the past 4 years and I am very familiar with the daily trading range, historical prices and also what each catalyst will do for the share price.
Well I got tired of just sitting and waiting on this holding, so I got this idea to sell all my shares in this company for what would be called a realized loss during a green period. I then waited for the inevitable 20 cent swing back down and re-bought all my shares plus more since I had the same amount of money but a lower per unit price. I have so far kept this up for the last two months and now have almost 15,000 shares. It really doesn't even matter if the stock is bearish or bullish, I always see the daily spread of 10 to 30 cents measured from opening price. I would also like to point out the share price of the company is essentially the same now as when I started, so I am up 50% without any share price increase.
It also doesn't seem to matter what your starting and finishing prices of the previous trade were, as long as you sell during an upswing and buy near the bottom. I have increased my equity holdings in this company by 50% without the addition of any money. Does anyone know what this sort of trading is called?
Submitted July 09, 2020 at 09:03PM by RealCanadianMonkey https://ift.tt/2AKoidT
