I want to share with you one strategy which will give regular income on daily basis as compared to long term investing.
Idea here is to select a list of stocks which are High quality and have High Beta value.
Now we buy stocks in tranches say for eg. Buy at every dollar.
Next we define price at which we will sell this stock brought above once we reach our target profit. For eg : Sell at 5% profit.
Since the stock is very volatile it will constantly keep on Buying and Selling multiple times throughout day.
This will give us constant return on the stock.
When the stock is in downward momentum we will continue buying the stock.
When the stock starts uptrend we will sell the stock every time we hit 5% of the buying price.
What do you guys think about this strategy ? If someone can implement and backtest that would be great since I have no idea how to implement this.
By Quality I mean?
Strong balance sheets (low debt)
High earnings growth