Having a strategy is key to running with stocks. When I first started "playing" the stock market I didn't have one and made a lot of mistakes. I still make mistakes and I don't know everything. So I'm here.
My latest strategy is very simple. I study stocks and decide on a few that I like, and then I wait for a pullback and I buy. I sell leading into earnings when the market rallys. I've made some good money on this move. I bought Ford during a pullback July 09 and sold it into this quarters earnings with an over 100 percent profit. I did make a few mistakes on this one.
1. I only bought 100 shares...which made selling calls not worth the money as I have a TD Ameritrade account and it costs me $10 to sell the call and another $10 if I want to buy the call. But in my defense, I only had $3k when I opened the account.
2. I didn't have an exit strategy. If I did I would have sold them during the first quarter earnings and sold them for $14.
3. I should have bought more when shares dropped to the low $10's. I liked the stock, so during the latest tank why didn't I buy more?
My next strategy for Ford is to hopefully buy during the next pullback if the earnings report tomorrow sounds good for the year. I'm looking to get back in at about $10.50ish and will set a trigger alert after the earnings report. And I hope to buy more than 100 shares.
Disclosure: Sold positions