Not sure I understand why you think it's not ok to trade a stock you think long term will do well?
Say Rawnoc believes PFHO is going to $100 and say he owns 2,000 shares. However as is clear by the market, it does not yet believe the stock is worth that price and in the mean time due to market actions the price will continue to bounce around in the $20-30 level, what is wrong with him continually trading say 300 in at high 20's and out at low 30's if it looks like its a trade that can be pulled off repeatedly?
He makes money trading some stock while he waits for the eventual $100 pay off, he is still very long in his overall position, and making profits trading in the mean time can actually increase his long term holding if he reinvests the extra and continues to sell only the 300 ie. sell 300, buy back 330, sell 300, buy 330.........
The biggest risk for him in the example above is one day he'll sell the 300 in the $30's expecting to buy back in the $20's but it will keep going.
He's still has a huge position, possibly increased in size anks to his trading, has profited in the mean time and just misses out on the extra 300, which were probably free by now after a few trades in and out.
Seems like a perfectly valid strategy to me and in absolutely no way contradictory to his long term belief of a $100+ price.
