With all the online day trading that’s available to regular people, it’s a breeze to pick and buy and pick and sell, etc. What if you were to find three to ten stocks that hold their average value? Wouldn’t it be interesting to use those stocks as a gaining vehicle and a group of less valuable, relatively less risk stocks as a holding bin for your gains?
As fantasies go, this one can get expensive, but if you look and look and devote some time to the exploration, you’re sure to find stocks that behave like GS that are cheaper to buy in to. Google Finance is in BETA and it’s wonderful. They refer to uber-cool flash effects, and they’re right. The picture above comes from Google Finance and shows GS over the past year.
I applied the $200 marker retro-actively and didn’t make a fortune, but I also didn’t lose my shirt when holding the gains in Comcast which only lost about $120 of my dollars. Today’s price of GS is $176.5 – it’s a fine time to buy even though it could drop. What time shows is that it’s a reasonable expectation that GS will rise to $200 again. When it falls steadily for a week, I’ve pretended to have pulled out and put the gains elsewhere.
Other than Goldman Sachs, do you know of any other stocks that hold their average value?