On the surface your plan seems good, but it depends completely on replacing the stock you sell with a fast rising stock that you buy. In reality, that is much, much, much easier said than done. As the current market is demonstrating, high growth stocks are a tricky business. Those who rode Tesla, Netflix, Priceline and others up saw at least a decent size part of their profits lost in a week or two. There is certainly nothing wrong with those stocks, in fact I have owned all of them at one time or another and own two right now. But I also own AT&T, Disney and Clorox, which are nice dividend stocks that are pretty stable.

One thing you should try to learn about is sector rotation. If you want to move stocks instead of buy & hold, you can be successful by trying to figure out which sectors are currently in Wall Street's graces and which are out of favor. For instance, high growth stocks are out of favor right now.

Growth investors buy a stock because they think the company will grow, making the stock more valuable.

Speculators try to trade as stocks fluctuate up and down.

If you could find a stock that would go up a lot in a short time, you could sell it, or you could hold on to it because it will go up even more in a long time.

The problem is knowing when a stock is headed up or down. Sometimes it is best to just buy a good company and wait. Doing what you are thinking is more like day trading and is very hard to do, most lose a lot of money. The general trend of the market is up so diversified portfolios generally go up in the long term.

There are several kinds of companies in my opinion and they need to be treated differently.

High fliers are the hot stock of the week, names in the news, everybody wished they had bought them. Being new you are likely to buy high then hold too long. Names like Google, NetFlicks, Pandora. Some will get great and others crash and burn. They sometimes don't have a profit but are growing.

Next is slow and steady growth, things like home builders might run in cycles but over time they might go up.

The kind many like are what I call old lady stocks. They are often cash cows, giving dividends, not growing much but not losing much either. Utilities, grocery stores, restaurants, car companies.

I have mostly ETFs and Mutual funds with low expenses so I can own thousands of companies large and small all over the world, I only sell if I have a reason. I have some individual shares in MCD that I have had since they were at 27 and now over 100, pays about 3% dividend and grows. I don't sell because it cost a commission and in my taxable investments I would have capital gains taxes. I will sell when I see people not eating fast food or people in other countries not eating fast foods or if I need to spend the money.

You can talk all day long about how easy it is to make money on the stock market.

Get your money out and put your theories into practice.

You will see it ain't so easy!

The reason you buy or sell shares is down to what you think of their future. It isn't, or shouldn't be a tax reason or commission (?) reason that is the primary reason.

Hey,

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Good Bye

OJ Simpson lookin ahh?

Yes, that does sound like a dumb question.

But to answer it anyway, you need to sell the stock when it (the price) starts moving in a way that you don't like. Regardless of the timeframe.

So I was reading a stock market book and this probably seems like a dumb question. Anyways, in this book it mentions a lot about growth investing and just sitting on stocks for multiple years and what not. When I think about the most effects way to make money fast on stocks is to move them quickly am I wrong? Wouldn't you make money fast if you bought a stock low and when it got to be a good income you sell it and buy another one that is on its way up? Or do you wanna buy a stock and sit on it for like a year? I feel like its just gonna keep going up and down between the margin of safety (Difference between book value and current stock price.) Any advice would be cool. Kinda just looking for someone to maybe talk to about it so email me too if you want I could probably think of like a thousand questions!