Stock Trading Information Blog

You don’t need to have large swings in the price of the stock to make money.  In fact, some stocks act almost like an annuity, they repeat the same pattern of highs and lows. If you take advantage of that pattern you can pocket a tidy sum over time.

I’ll use one of my experiences to explain this. I was watching a stock for a while and noticed that it dipped just below 40 and then rose up to a little above 47 and began the decent down to under 40. It repeated the process once a week.  I only owned 100 shares of this stock but I knew that if I played it right, I could make a tidy profit.

I used limit order to purchase and sell the stock.  A limit order is an order that says you won’t pay more than a specific price for a stock or sell it for under a specific price.  As soon as the stock hit 47, I sold and immediately placed my limit order for the purchase at 40.

Sure enough, before the end of the week, I bought the stock again at 40, but this time, I used the profit to purchase more shares. I then set the limit order to sell at 47. While I didn’t need to watch the stock, you can bet I checked it frequently. Sometimes the cycle ran four business days, other times it ran six but it was relatively consistent.

After repeating the buy and sell of the stock and picking up more shares each time, I started to keep some of the stock in case it continued to climb and also tuck away a little of the profit. Eventually, the stock climbed and never returned to the low of 40 until the whole market dumped.  By that time, I had sold all my shares.

When you watch the bumps in a stock, you can make additional money to add to your normal trading gains. I want you to get a taste of success in the market. Remember the more you know, the more you succeed. The more you succeed, the better I look.