I have a small account, about $3,000, and I'm fairly new to the market in general. Recently I went all in on a single stock and found myself holding the bag. I'm on a cash account with my broker so I have to buy stock with settled cash or wait to sell until 2 business days later. Here's how I have dealt with my situation. I'm wondering if this is a strategy others have done and I could study to improve on. It seems to fit my work/life schedule.
Every day the price is still quite volatile, changing 10-15%. I started viewing my stock as though I was a store owner and I sell this stock when it predictably rises 5-8% every morning in the first hour and buy it back when it comes down off it's peak an hour or two later. It's almost like I have customers in my store in the early morning and later my supplier stops by and I restock. I have been slowly increasing the number of shares I own which allows me to sell more two days later.
I'm not focusing on the price I paid for the original shares as long as I sell and buy each day at a profit and reinvest profits into more shares.
I broke even from my bag holding this week and closed out today with a profit when I evaluate all my moves on a spreadsheet but my broker account still says I have lost money on the stock. I know I made money though because my account is worth more now than the amount of cash I deposited on August 5th when my balance was near zero.
Does this strategy have a name? Has anyone ever heard of anything similar I could read more about? I built a simulation program and played with percent to buy and percent to sell and percent above open price to sell at to maximize gains but if this is a strategy I'm sure another mathematician more focused on financial mathematics will have a detailed analysis of this I could read.
I appreciate your time
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