Taking Advantage of Volatility

"Buy the dips, sell the rips." ~ Wall Street Adage

With the current volatility, I have started buying additional shares of my core holdings to trade.  To note, I am not selling my core holding, which I plan to hold through the volatility.

So when one of my holdings dips, I buy an additional small position.   When it rises approximately 10%, I sell the small position.  Then I wait for it to dip again.   With multiple holdings, I can rotate as different sectors dip at different times. 

Normally, the cost of transactions would prevent me from making small trades of around $100-$200.   However, I was given free trades in two of my brokerage accounts, which allow me to make the small trades commission free.  Thus, my small profit is not eliminated by the commission charge.

I expect the market will continue to be volatile the rest of 2018, allowing me to "buy the dips, and sell the rips" with small trades.

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This is not financial or investment advice. Please consult a professional advisor.

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