Making 1% a day is quite possible for a few days or even a few weeks if you're on a have a hot streak, and you're trading a small amount of money. But doing that consistently is impossible. No one makes 250% a year (trading a fixed amount) or 1,100% if you're compounding the 1% gains as well).
Here's a simple example to demonstrate the problem with your strategy. Suppose you invest $500 in 3 stocks.
- Stock A makes 50% and that's + $250
- Stock B makes 24% and that's + $120
- Stock C loses 50% and that's - $250
Your total gain is $120 so your yield is 8% ($120/$1500). Success! Your strategy works!!!
But wait, you said that you were going to sell your stocks when they rose 2%. Oops, because of that, you didn't make $250 on Stock A and you didn't make $120 on stock B. In fact, you only made $10 on each so you have a net loss of $230 or -15.33%.
The fallacy in your strategy is your assumption that you "pick 10 good stocks and 10 bad ... (and) the stocks made and lost the same value." Sorry, but it doesn't happen that way. Stocks will have varying amounts of gain and loss.
One of the most important tenets for a trader is “Cut Your Losses and Let Your Profits Run”. You've reversed that by cutting your profits and assuming that your losses won't be more than a small amount. Some will lose more than a modest amount.
Successful stock trading requires that you have an edge (a strategy that works) as well as disciplined risk management. Your strategy has neither.
As an aside, in March, the stock market dropped about 35%. How do you think that your strategy would have worked then?