Is this a decent investment strategy?

[Fedorgasm]

For someone who doesn't know a lot about investing and doesn't want to have to constantly monitor his investments....

Pick a fairly stable company that won't go bankrupt any time soon.

Set a price at which you buy and set a price at which you sell. Set up your investment software to just buy and sell when it hits those price points. Make money without doing shit.

For example:

Wal-Mart is a pretty safe bet to not go bankrupt in the next 10 years. Their stock usually hovers around 80 bucks.
So you set-up your investing software or app or even your broker with these instructions:
1. Every time Wal-Mart goes below 75 bucks, buy as much as you can with whatever money I have in my investment account.
2. Every time Wal-Mart goes above 85 bucks, sell it all. Leave the money in my investment account so it will be there to use when it drops below 75 again and I need to buy.
3. Profit?


This seems to make logical sense to me but I'm no groundhog expert so I'm sure if it were that simple then everyone would be doing it.

 

[I Am Legion]

For someone who doesn't know a lot about investing and doesn't want to have to constantly monitor his investments....

Pick a fairly stable company that won't go bankrupt any time soon.

Set a price at which you buy and set a price at which you sell. Set up your investment software to just buy and sell when it hits those price points. Make money without doing shit.

For example:

Wal-Mart is a pretty safe bet to not go bankrupt in the next 10 years. Their stock usually hovers around 80 bucks.
So you set-up your investing software or app or even your broker with these instructions:
1. Every time Wal-Mart goes below 75 bucks, buy as much as you can with whatever money I have in my investment account.
2. Every time Wal-Mart goes above 85 bucks, sell it all. Leave the money in my investment account so it will be there to use when it drops below 75 again and I need to buy.
3. Profit?


This seems to make logical sense to me but I'm no groundhog expert so I'm sure if it were that simple then everyone would be doing it.

Because Walmart could drop to 65 and stay there for years. Most day traders lose. Also trading stocks with high prices like Walmart require a lot of capital to make $$. 100 shares could be 8gs tied up, and would have to go up a considerable amount to make any scratch.

 

[dabrian]

Don't invest more than 5 percent in any one stock, way to much risk. Put the majority of your investment portfolio in mutual funds.

 

[Headkicktoleg]

sell everything and throw it into bitcoin

 

[Fedorgasm]

Because Walmart could drop to 65 and stay there for years. Most day traders lose. Also trading stocks with high prices like Walmart require a lot of capital to make $$. 100 shares could be 8gs tied up, and would have to go up a considerable amount to make any scratch.

That makes sense. Is what I described considered day trading?
I thought those dudes obsessed over the market and tried to analyze which stocks would go up and down. I was trying to do the opposite. Where I don't have to do shit but set it and forget it.

What if I did this same strategy with an index? Like instead of a single stock I did it wth teh S&P 500 index?

 

[Jack Reacheround]

If you don’t want to have to constantly manage your investments, and you aren’t trying to make a ton of money immediately, invest in an index fund.

 

[Michaelangelo]

yes you finally figured out the stock market lmao

 

[bad seed]

For someone who doesn't know a lot about investing and doesn't want to have to constantly monitor his investments....

Pick a fairly stable company that won't go bankrupt any time soon.

Set a price at which you buy and set a price at which you sell. Set up your investment software to just buy and sell when it hits those price points. Make money without doing shit.

For example:

Wal-Mart is a pretty safe bet to not go bankrupt in the next 10 years. Their stock usually hovers around 80 bucks.
So you set-up your investing software or app or even your broker with these instructions:
1. Every time Wal-Mart goes below 75 bucks, buy as much as you can with whatever money I have in my investment account.
2. Every time Wal-Mart goes above 85 bucks, sell it all. Leave the money in my investment account so it will be there to use when it drops below 75 again and I need to buy.
3. Profit?


This seems to make logical sense to me but I'm no groundhog expert so I'm sure if it were that simple then everyone would be doing it.

you're gonna be racking in shitloads of taxes and brokerage fees.

 

[Iscariott]

Your transactions will be eating your profit and you will pay tax on any profit as pure income.

 

[Sharon Peters]

Buy low and sell high imo

 

[Otto!]

Funny how you keep seeing ads from investment firms saying “this stock has gone through the roof, get in on the action!”

 

[ocean size]

This approach would lose to buying and holding an index. I doubt you would beat the market.