2 Unsophisticated strategies, what do you think?
My wife has an e-trade account with about $3k in it that she has me make the decisions on. I am coming at this from a compounding interest type of standpoint where I make many small, repeatable, profitable transactions. I have used this strategy so far:
Buy shares in a company that has just announced a split, is about to split, or has just split, hold on to them until they go up 3% and sell. (I would eventually like to do this with options and increase the % of target profit). This has been taking 3-5 days on average to complete.
This has been a good strategy so far, but there are not always companies available that meet this criterium, therefore I am looking for another strategy. What I was thinking about was investing in companies that have had announcements of aftermarket upgrades from "buy" or to "strong buy" first thing in the morning and hold on to them until close to the close of the market and sell them, rinse, lather, repeat.
Any thoughts or suggestions? Thank you in advance.
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