LogFAQs > #938339032

Im not the best at math, which scenario is the most profitable:

A) You put in $1,000 in stock A at $5 and sell it at $6.

B) You put $1,000 in stock A at $5.00. It goes up to $5.50 at which point you sell. You immediately buy back in for another $1,000 at $5.50. It goes up to $6 and you sell.

C) You put $1,000 in stock A at $5.00. It goes up to $5.50 at which point you sell. It then drops to $5.25 at which point you put in another $1,000. It goes up to $6 and you sell.

By my math...

Scenario A is a 20% gain which comes out to a $200 profit.

Scenario B starts with a $100 profit in the first sale, and a 9.1% profit the second time ($91). This comes to $191 profit.

Scenario C is a 10% profit the first time you sell it ($100 profit) and a 14.29% profit the second time ($143 profit). This comes to $243 profit.

Did I do all that right?

The reason I ask is because I often wonder if its better to sell a stock after a quick spike and buy back into it, or just hold from the get go. I reckon it also depends on how much of a dip happens when you buy back in / how high the stock.