My strategy will not work for traders who want to buy low and sell high.
However, this strategy will work for those who want to gain dividend from investing.
If the stock pays yearly dividend, I will make a decision after the third quarter result. That means I choose a good company to buy after reading the release of the third quarter result.
I will check the third quarter to see if the company is doing exceptionally well, and if yes, there might be special dividend on top of the normal dividend.
If a company can make a lot of money in 9 months, it will have a good year even if the last quarter is not as profitable as the rest of the year.
So far, this strategy works. The price increases sharply after the release of full year result, and especially when there is an announcement of special dividend.
I will hold the stock if the company is likely to do well for another year or two. If not, I will sell the stock to lock in profits.