In the last month, I've watched the rise and falls of the market and specific stocks with great interest. In particular, I've seen certain stocks rise and fall by 2-3 percentage points on a frequent basis. It leaves me thinking that I should jump in with a significant amount when the stock hits what I perceive as the low, then sell out after a 50-100 basis point rise.
The intent would be to trade my usual 5-9% margin for a much smaller percentage gain, but to make it up in volume (greater number of shares and greater number of trades).
This is not my usual strategy and obviously has a lot of downside risk. I'm unlikely to actually pull the trigger unless the stock reaches my buy-in price, but the temptation to act as the more prototypical day trader is certainly there at times when I'm seeing volatility but am still sitting on the sidelines.
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