I have written about stocks before (for example…here). I want to discuss a strategy now that you can use to simplify investing and the stock market in general. You may not have the money to invest right now, but if you master this strategy, you will know what to do once you have extra money.

Here is the strategy; concentrate on the daily and weekly price movements of just ONE high quality stock. This is not a penny stock. This is one of the big and popular stocks that you keep hearing about all the time like Apple, Tesla, Microsoft, Intel, Visa, etc. This stock should be part of the Dow 30 or Nasdaq. It should be a company that you like or that you have an emotional connection to. If you are not sure, just do a search for “the 25 most popular stocks right now” on Google and pick the one you like the most.

For example, I have been tracking AMAZON (AMZN) for a while now and I have reached the point where I pretty much know where the stock price is going. Amazon was up around $3,000 per share in early 2022 – but it did a 20 split on June 6, 2022. This means that the stock was split into 20 shares. So if you had 2 shares before, you had 40 shares after the split. I think the stock was about $2,000 right before the split–so the shares were about $100 per share after the split (this lower price encourages more people to buy the stock). I purchased something like 30 shares after this split..because I am confident that the stock will go back to the $2,000 to $3,000 per share range in a few years. It has been a year now since the split, and the stock is now around $130.

The highest price it has reached so far is $146.

If you look at the history of the stock, it keeps moving up. For example, here is how it looked like in the last 30 days:

It will take a dive – but it will jump back up again.

I bring this up because I recently purchased more shares of Amazon when it was at $118 (about a week ago) – and soon after I saw the price go up steadily. Once it hit $130 yesterday (June 22: a new high for the stock) I KNEW that it would soon drop down to maybe $129 or $128 – and that is exactly what happened this morning. The price was around $129 this morning.

You may be saying, “big deal”….or “so what?” Well, I can turn this knowledge into CASH in the short term. For example, lets say I had the funds to purchase 100 shares of Amazon and lets say I purchased the shares when they were $125 (a few days ago). The investment here would be $12,500. Now, I am CONFIDENT that this stock is going UP ….so the stock hitting $130 is just a matter of time (by the way; this is NOT a penny stock; it will not be going bankrupt any time soon).

Once the stock hits $130, I would then sell it for a quick profit of $5 x 100 = $500. I could make this $500 over and over again with this stock because I know that it steadily keeps going up in value. As a matter of fact, I have noticed that recently its being going up about 4 price points per WEEK. This is what I mean, it was $115 on May 25 and it went up to $130 on June 22. The difference here is $15, divided by 4 weeks that is about a $4 increase per week.

At this rate, Amazon should be around $134 around June 30 or before.

Now…this can change – but since I am basically paying attention to this ONE stock, I am likely to know about it (or react to BAD News quickly) before most people because its way easier to track ONE stock than 10 or 50 stocks (which is what many investors do). And when it comes to tracking, what you want to do is (1) look at the price of the stock EVERY DAY so you get a feel of how the stock moves and (2) read up on the latest news related to your favorite stock. For example, it looks like Amazon may take over a company called Ocado, which made the price of that company stock go up recently.

How does all this relate to YOU? Well, you are NOT going to get rich playing Pick 3 (it’s just an interesting hobby) – but you CAN get rich investing in the right stocks…and this is an EXCELLENT way to prepare yourself to become a stock investor. What I recommend you do is find one excellent company (Example: Tesla, Amazon, Apple, Nvidia, META, etc.) and study the price movement every day. You will soon reach a point when you just KNOW when the price of the stock will go UP or DOWN – a day or two BEFORE it happens.

Focus on MAKING MONEY RIGHT NOW. The traditional way of investing is to buy and hold a stock for YEARS. You can do this with part of your money (for retirement). However, there is another approach that allows you to make money NOW and you do that by being a SWING Trader. This is an approach to investing where you get in and out of a stock quickly (over a matter of days or weeks). Swing Trading is NOT the same as being a DAY Trader where you buy and sell stocks on the same day. I think Day Trading is interesting – but it’s way too stressful because you have to make a profit TODAY. That sounds cool – but I think that giving yourself a few days or a week is a better approach (Swing Trading).

So let’s say you pick a stock you like and you track it every day and you reach a point where you just KNOW (ahead of time) when the stock is about to go up or down. Make the prediction (post it somewhere to make it “official”) and see if you were right. If you were right, great. What you want to do is reach the point when you are right consistently. On those days when you were not right, at least you learned something. Also, since you are tracking a SOLID profitable company, you don’t have to worry about your stock going down to $0 – so this will give you peace of mind.

To learn the approach I will be taking in the near future….watch THIS VIDEO.

Her channel is HERE.

This is the course that I will be purchasing in the near future (I like her approach to investing). The course is not cheap, but I think it’s worth it (I am on her email list; sometimes she has a Special with a 40% discount; $6,000 instead of $10,000). She suggests tracking several stocks – but I will focus on Amazon for now. When I am ready I will make a large purchase of 10 or more Amazon stocks- and sell these stocks soon after for a quick profit (again, I am looking to make money NOW–not 10 years in the future; and I don’t mind starting out with small profits).

I will keep you updated on my progress. For now….find a company you really like and track it every day until you reach a point where you can accurately predict when the price of the stock will go up or down. Soon you will be able to turn this knowledge into cold hard cash.

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The 5 Day System

This strategy is only to be used with “solid” stocks like Tesla, Apple, META, etc. You need a 5 day chart. The highest price in this 5 day chart will be the target at which you will sell your stock (assuming that it is higher than the current price of the stock). For example, below you see the current 5 day chart for Tesla. As you can see, the price right now of Tesla is $256 – but the highest price in the last 5 days was $275.

The difference between these two numbers is $19 ($275 – $256). That will be the profit (per shares purchased) when using this system. The assumption is this: the stock will soon go up to the high price of $275 (with a stock like Tesla, this WILL happen).

So, what I would do is buy 100 shares at the current price ($256 X 100 = $25,600 invested) with the intention of SELLING the stock when it goes up to $275 per share. The profit here will be $19 X 100 or $1,900. Now…this is NOT doable for most people – but the same principle applies to cheaper stocks.

For example, I have reason to believe that FAST is an excellent stock right now. As you can see below the 5-day differential is about $1 ($57.89 high – $56.89 current price). That is a small number – but this small number will be multiplied by the number of shares purchased (Example: 200 shares purchased = $200 profit). Basically, this means that I am expecting this $56.89 stock to go back up to $57.89 SOON…because it was up to that price in the last 5 DAYS. Actually, I would not be surprised if this stock hits $57.89 or $58 per share today or tomorrow.

NOTE: Expecting a $1 increase in price in the next 1 to 7 days in most SOLID stocks (Tesla, META, Apple, etc.) is VERY realistic.