I have no idea what I'm doing so if this is a horrible idea let me know.
So obviously, there is always risk here with this strategy. Let's say I want to buy a new monitor that costs 100 bucks. I could just pay for it, but instead I try to quickly generate some money in my bank account to pay for it. The strategy is I could buy a stock in an expensive-yet-non-volatile company (amazon, google), wait a few days until they have a good day and it's up a few points, then sell. All within a week.
Is this a valid strategy? The risk is obviously losing money if the stock crashes, but if its a non-volatile stock the chances of that are very low I would think.
My thinking is:
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Best case scenario: (sort of) free monitor
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acceptable scenario: stock fluctuates for awhile without having a good enough day to sell, but not totally bombing. At this point, I'd just buy the monitor and consider the stock a long term investment
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worst case scenario: market (or just the stock) crashes. very low chance i'd assume. depending on if the company is in tact, I still have my long term investment after the stock stabilizes after a few months/years
Assuming you choose the right company and are willing to wait if things don't go your way, I can't see any real downside here. I'm just not sure if it's a good idea to buy then quickly sell, but maybe that's common.
Submitted November 21, 2017 at 01:40PM by I_cut_my_own_jib http://ift.tt/2mPKLhV
