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I am a definite buy and holder, but am starting to dabble in trading some individual stocks specifically those that seem to consistently trade in a range. Ones i've noticed like this were CN (although it's broken out of it's range), Yamana and Las Vegas Sands just to name a few. The thought here is of course to buy at low end of the range, hold for a quick 10% and then dump. Rinse and repeat when it hits the low end again. The key here of course is to do it with a stock you don't mind owning as a long term hold if it happens to nosedive.

Just wondering if others out there have a list of such stocks.
 

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I am a definite buy and holder, but am starting to dabble in trading some individual stocks specifically those that seem to consistently trade in a range. Ones i've noticed like this were CN (although it's broken out of it's range), Yamana and Las Vegas Sands just to name a few. The thought here is of course to buy at low end of the range, hold for a quick 10% and then dump. Rinse and repeat when it hits the low end again. The key here of course is to do it with a stock you don't mind owning as a long term hold if it happens to nosedive.

Just wondering if others out there have a list of such stocks.
You need to understand why a specific stock is breaking down. Pretty counter intuitive to hold onto a stock especially if the main cause of the drop was due to the fundamental shift in the company's operation or legal issues. Thus, you need to reevaluate the stock instead of blindly holding onto it. Many still holding onto such baggage till this day from the 2000 Tech Bubble. Or more recently - Lehman, which consolidated around $55 to $65 for 6 months (2007-2008) before the collapse. I know a few who held onto them as a "long term" investment.:confused:

In a trading world, any missed stops are called the long term investment. ;)
 

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My experience with this is that you may win this game, one or two or maybe even three times but inevitably what happens is you sell the stock for your 10% gain, just to watch it move up another 20% to 30% or more, or even worse, you buy it back 10% lower just as it was about to crater.

You guarantee that your upside is only 10% but since you will almost always buy it back 10% lower, your downside is unlimited. Over time this will work against you ... unless you are the 0.001% of traders that get lucky and it works a lot longer, you write a book and maybe develop some software trading packages for others.

Good luck in whatever you do.
 
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