Hi traders, I'm brand new to stock trading, and as such I have a practical question. Let's assume I buy a stock at $1 on Thursday and it goes up to $2 by close on Friday. I believe it will eventually hit $10, but I also believe it will dip slightly on Monday. It starts to dip Monday, I sell at $1.95, it hits a low of $1.65, then rebounds. I buy in again at $1.70 and ride the wave back up, a week later its at $6 and climbing. Here's my question: Have I made the correct choice to sell and buy back in, or should I have just left my original purchase ride? The only other factor might be that instead of buying back the 248 stocks I sold, I was able to buy 265 the 2nd time around... I'm 99% sure what I did was risky, but ultimately a good thing, but I'm smart enough to know I don't know enough higher/theoretical mathematics to know for sure. Give me the answer stock gurus! Also, buy TXMD and AVCT $!
If you get it right, you'll make more money trading it. The important thing to remember is you will get it wrong as well. Let's say you sold it at that $1.95. Imagine if it closed at $1.95. The next day, it opened at $3. Now you're scared to get in because it just made a big jump. Sorry, it doesn't dip again and goes to $10. That could have happened as well. You gambled and got it right. Don't let it addict you. Have a trading plan for every share you ever buy, and stick to it.
