I have traded XCO (at times) like you suggest that Neil should above. I've bought and sold ~2.5 million shares in the last 26 months. I still hold ~ 150K shares, with a cost basis averaging $5.70 or so. The strategy you mention above has worked well in a declining and volatile price action of recent years with XCO. I do think Neil and patient investors are telling us the proper thing to do now, at these very low levels, is to buy and hold. I've traded often for a 2-3% gain, but in the end you need to get a larger return than that at some point. You also pay more taxes doing it my way. I do benefit from the panic of some investors that throw in the towel and sell at these low prices. I can't understand why there are not more smart buyers like Neil and Patient d. I just shifted some funds around, and will buy another 110K of XCO next week, if pricing tests the $5.05 level.
First there is a difference between the buy and ask. As soon as I buy I am 1 cent behind. Second the past is not necessarily indicative of future trading patterns. Third if you play the game for pennies you have to end up a loser because you sell for a small profit but each time risk losing a large sum. Finally I can't trade just this one stock all day.
well if you are going to buy again if it hits 4.99 you would not lose that much at all. you have been buying on the way down to dollar cost average but according to you we are at bottom or pretty close. Wish you luck like everyone else that has held long term/