jump to navigation

Double Up Free Stock Strategy

Double Up Free Stock Strategy: buy. When it doubles up I place a 10% Trailing Stop Order to recover invested money and still enjoy further growth opportunities

Some stocks attract my attention as a candidate for my $1500 monthly investment, but I don’t feel confident enough to risk so much on it. I just invest $100 on those. To make it worthwhile I need to wait for a double up to recover my money

1) I choose a few stocks I like every month, I discuss it with Blog readers, then I invest $ 100 on the stock;

2) I wait until stock’s value doubles up (100% up);

3) I place a “Trailing Stop” sell order to sell half of the stock to recover the total amount invested, including commissions;

4) Remaining shares of this stock are “Free Shares”. I keep them forever. They are mine, but I haven’t paid them :-).

strategy.jpg

Let’s use an example from last week

Date Quantity Description Symbol Price Amount
04/28/2023 +6 bought RXSIGHT INC RXST 18.0963 -108.58
12/13/2023 -3
sold		 RXSIGHT INC RXST 38.9834 +116.94

1) On April the 28th 2023 I bought 6 RXSIGHT shares at $18.09 each, spending $108.58 total

2) Eight months later, on December the 4th 2023, I sold 3 RXSIGHT shares at $18.09  each, getting back on my bank account $116.94

3) I still own 3 (RXST) shares that I got for free and are worth $116.4. I also made $8 cash

Of course this example is a very favourable one. Most stock that I buy do not go up 100% in 8 months! Some go up a little bit, some down and one, NEW Century Financial even filled for bankruptcy last week, burning all that I had put on it.

Let’s stop thinking about NEW Century’s sad story, and let’s look at the “great” advantages of my “Free Stock Strategy”:

1) Over a long time-span, by investing every month and by only selling on 100% gains, I end up buying most shares when markets are down and selling most of them when when they are up, which is obviously a good behaviour.

2) Over a long time-span most of my stocks will be free and I will get most of my invested cash back. Even in bad times, when markets collapse, I am still buying stocks at very low prices. As soon as markets bounce back, I get 100% gains on those stocks that I have bought close to minimum. This will reduce risks for me.

3) By choosing  different stocks every month I end up owning a wide range of free stocks, some of which may skyrocket some day.