When I first bought and sold stocks, I would buy and sell all of the stock at one time.
For example, say I liked stock XZY, and I wanted to buy $5,000 worth of it. If I thought $30 a share was a good buy price for the stock, when it reached $30 a share, I would spend all $5,000 on XYY.
Now I have a different approach. In the same example above, if XYZ hits $30, I might spend $3,000 on XYZ and keep $2,000 back. If the shares fall below $30 and I am still big on XYZ, then I might spend the other $2,000. If instead the the price goes above $30 after my inital stock buy, I might buy more shares with the remaning $2,000 or I might be content in profiting from the increase in value of my iniital shares.
Since you don't know precisely what is going to happen, incremental buying and selling of stocks reduces the risk somewhat as you are making decisions over a longer time period with the benefit of more information.
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