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
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