invest in pool of stocks in ira acct#

Discussion in 'Trading' started by NoEmotions, Sep 17, 2007.

  1. Hi Friends,

    I have created a list of my favorite stocks,around 20 of them, from different sectors.I will not be buying any stock outside of this list for atleast next 5 years.
    I have an IRA acct# with around 20K.
    I will keep allocating money to my ira acct on every pay period and i just keep this new money in money market acct# for later scaling in on required basis.

    I have outlined following 3 investment strategies.

    1) just open an account with buyandhold.com and buy $1000 each company stocks, and invest my 20K. on need basis scale additional $1000 in the companies which go down say 50% or maybe scale in $1000 with every 30% drop from prev high. this way i will create my own index.
    2) second option is to look out for swing trade entries which may last from 1 week to 1 month and invest only in those stocks which fullfill the entry criteria, but this leads to big confusion, how many stocks will have entry signal at a given time and how much money should i be allocating for each trade at the same time making sure that I am well invested as well as I have cash available to scale in or new stock entries signals come up.
    3) just buy stock from the list worth $1000 whenever it touches its 200 MA and scale in with $1000 with every 30% drop, this way I think I may end up lot of money not invested in money market acct as it may take years/months for some stocks to touch their 200 MA.

    A)Is there any other better way to trade a selected pool of stocks with limited money?
    B)Is there a better choice than buyandhold.com as they will also charge me monthly fee?
    C)Did any of you had similar task and approx how did you go about, only high level view should be good enough.

    Thanks as usual,