I have identified a stock after doing some research and planning to follow the below investment plan for my investments in the stock:
- Buy a stock at $10 per share with the $1000 I have - I am hoping the stocks would reach $100 in the next 2-3 Years
Wait to see the performance and when it is up by 5-10% - invest another $1000.
Continue this until I reach my target of $100 (and maybe continue doing this afterwards)
It is based on the following assumptions\hope\factors
- The stock keeps on giving good returns
- I do not have the capacity to invest a lump sum amount initially
- I also wouldn't want to risk putting all the money at once
Note: I would have a stop loss plan at every step of investment
Is this something normal to do? Can you suggest any better alternative? I am just planning to enter the stock market and any guidance would be really helpful!