What is "buying in increments" and "selling in increments"?

Answer 1

Big industries are indulging in buying their own stocks when the market is coming down. They will resort to selling when goes up. There by they will be earning profits by this method. This also makes feel investors that their stocks are less volatile. Small investors can also start consolidating the stocks which are consistently moving up. Start unloading in increments when it comes down.

Answer 2

Buying small amounts of stock as the price goes up as opposed to buying a large amount at once. Selling(shorting) small amounts of stock as the price goes down as opposed to shorting a large position at once.

In increments you are testing the market and risking less funds than by placing a large position at once if the market goes against you.

Answer 3

1.) Suppose you have earmarked $10,000 for Stock A. So you dont go and just buy it in one go. You slice it in say 4 chunks of 2500 each. And then buy Stock A in 4 separate trades. This basically gives you ability to better control your buying cost. However, if price rises steadily then you might loose out some money. So you need to decide based on what you are comfortable with.

2.) Same goes for selling. Rather than selling 1000 stocks in one go, sell them in 5 tranches of say 200 each.