AboutDr. Joseph de Beauchamp Expertise Blue Chips stocks, investment, return, risk, and all information on investing in blue chip stocks is a complex area. I can help answer these questions.
Experience
Past/Present clients Over 2000 of the largest public companies.
Question My idea is to invest in Blue Chip Stocks. Usually Blue Chip Stocks bounce back & forth in a $5 per share range. I will estimate the average lowest price & average highest price for that particular year using "historical price" searches. For example, I buy a stock that has been bouncing back & forth from $50 to $55 throughout the year, and buy it when it reaches $50 & sell it when it reaches $55. And let's say I start off investing $16,000 at a time. My profit minus commission & taxes at 35% is approximately $1020. I've never invested before. This method would work wouldn't it? I can't afford any risks, so I'd have to choose Blue Chip Stocks. The share prices don't move up & down enough to make enough profit to get rich, but $1020 a pop's not bad. Especially if the share price fluctuates like that more than once a year. And if you could find multiple Blue Chip Stocks & watch them close all the time, you might could get a few $1020 pops every year. And the more money you dump in each time, the bigger the pop. After a while, you ought to be able to have an decent additional flow of income. Do you think my idea would work?
Answer I do not adhere to technical price buying of stocks. I have never found this to work. Buy a stock for the longer term business concepts, and not just share price movement. I would not go down this path. After 30 years, trading does not make money for anyone.
You could do this in mock trades, and prove this up yourself before you risk money.
