jatiN mahindrA doT coM

This blog is primarily about Making Money Online but once you have made money, you need to do something with it!

For me, I’ve been messing with the stock market for a while and have recently developed a strategy that has been doing pretty ok for me this year.

My Stock Trading Strategy:
First, I opened my stock trading account through Wells Fargo. This is because when you’re a PMA customer (you need $20,000 or more in the bank across all accounts at all times I think it was), you get 100 free trades per year!

So instead of paying $7 per trade through Scott trade you get essentially $700 bucks in trades for free per year. I’ve never been able to come close to using them all yet.

After that, I’ve been following the stock of companies I actually have interest in. I have checked the stock price of Google, Apple, Valueclick, Wells Fargo, and a few others every week day for over a year. I feel like I know and understand how the company works in the stock market.

I have grown to know what is a good day and what is a bad day for those companies, simply by studying their patterns.

Next, I buy in. Whatever amount you can afford to risk. This is not retirement, this is not everything I have; this is money that I want to risk in hopes for better gains.

Now that I know how the stock works and have bought in (I bought in a while ago). I buy and sell in chunks.

I have a preset percentage in my head of increase that I would like to shoot for. Let’s just say that I want to shoot for 5% ROI on my investments.

Every time my stock increases 5%, I sell off 1/6th of my stock. If I have sold all except 1/3 of the stock, I keep that 1/3 of the entire holding for long term growth. On the converse, when my stock goes down 5% I buy in 1/6th more stock.

Let’s use numbers for ease. Let’s say I have 200 shares of Google (GOOG). It raises 5% over the month. I sell off 33 shares. It raises another 5% I sell another 33 shares.

Then it goes down back 5%. I buy 33 more shares.

This strategy is just what has been working for me. Some people do it completely differently, but I particularly like this method.

If you have any good tips for how you trade stock, I’d love to hear it as well.

Lastly, read the disclaimer. I’m no expert, don’t listen to anything I say, blah, blah. Anytime you enter into the stock market you risk losing money and it’s your decision 100%.

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