help me find the fault


So let's say I have 10k account

I bought 1 stock of xyz @ 100
Then I bought the same stock @ 98

Then I bought the same stock @ 96

Etc

Every 2 dollar drop I'll buy 1 stock

I'm not averaging down

If the position I bought @ 100 goes to 102 I'll sell it

If the stock that I bought @98 goes to 100 I'll sell it

Each position is independent

So yeah , I'll always have a wining position that I can sell for profit since price goes up and down

@ each 2$ interval I'll have 1 position only

For the sake of argument let's say the stock is spy

Which is very unlikely to go to zero

Yeas I'll have unrelized lose for the position I bought @ 100 when the price is 98

But then again I'll have a wining position all the time

What's wrong here ?

I'll sell any position that is in profit immediately and replace it with another new position at that interval

I did the math and it makes more than buy and hold year over year for spy


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *