I'm using the $100,000 stock simulator and I made 1200 dollars in a couple of days but I haven't been able to get passed that. Am I supposed to sell or is this a cycle in which a few days or weeks have to go buy before it goes up again?
How often am I supposed to trade? Everday or every week on average?
There are technical market sites that provide technical indicators that predict when a stock is over bought or over sold. Many traders use those. That limits trading to once every couple of weeks or even a month or so. Some stocks such as oil stock for example are real good candidates for that type of trading.
Others, such as myself, are fundamentalists. We will buy and hold a stock for years maybe. The daily and weekly cycles do not mean too much to us other than perhaps providing an opportune buying point. After all why settle for 2 or 3 points when there are 20 or 30 to be reaped, maybe more?
There is also the tax question to consider. Taxes on short term trades are considerably more than long term. Another point to consider is as long as a stock is not sold there are no taxes to pay. If a company is a growing company, why sell at all?
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