I keep lots of my stocks in IRA, IRA Roth and SEP accounts.
After observing stock market for a while, I have this idea of speeding up my earnings.
Usually I try to spend at least $1,500 per purchase on my stocks. Or if I am not sure in stock or short on money, I might spend less.
My point is - most stocks keep fluctuating in pricing. 52 weeks high/low pricing is a great example.
I try to buy my stocks on bad news at their lowest or close to lowest price. Then usually after some period of time stock's price will come back to original price or even higher. Then company might have another bad report and price will fall again. If I keep stock without selling I will just earn my dividends and see how my stock's prices jump back and forth - feeling happy on good earnings reports and a little worried on bad days.
But what if I pick certain amount as a point for sale and I will try to do it every week or every other week for different stock? Lets say I pick $300 or $400. So if any of my stocks earn this amount, I sell it. Then I will buy a different stock, which is on sale. By following this strategy, I can earn between $600 and $1600 extra money per month and reinvest it. I could add between $7,200 and $19,200 to my investment portfolio without even doing much extra. I already watch market every day. Even if I do it just once a month, I still can earn an extra $3600 - $4800 on top of my dividends earning.
What do you think about this strategy?
I think I will try to follow this way and I will update you in a while.