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I'm a very new 17 year old Fool (ie. I barely knew what a stock was 4 weeks ago...), considering opening a Roth IRA next week when I turn 18. I'm pretty much sold on the RP4- fits my time allotment (15 minutes per year about?) and mechanical is best for me because of my personality.

However today during my commute to school I thought of something that I'd like to share with you all. I'm sure I'm just reinventing the wheel here (and most likely its more square than circular) but it's worth a shot.

Consider this:
You're holding the RP4 in your IRA (no taxes until the end or at all) and also manage to get free commissions (I believe the only way to do this is with a very high minimum at Mastercard, although 25G might not be that high for some of us). Would it improve/affect returns to update your stock selection after shorter time intervals? ie. instead of waiting until the end of the year, why not every month, or week, or even every day? (realize that you're not paying taxes on gains or commissions)

Here is my rationale and then my father's opposition- perhaps you Fools could shed some further light on it.

First of all- Lets say you have the current RP4 and the bottom stock value goes up, thereby moving it out of the RP4. If youre not paying for commissions or taxes, it seems that you might be best to take your profits and get out. Invest in the new RP4 stock. If this is done every day/week/month, while more time consuming, the results might be better.

My father pointed out however that my scenario might not be the case always. For example if the stock one slot down from the lowest RP4 drops in price to the point that it gets into the RP4, you might be selling a stock that has not actually improved.

I guess I'm looking for a possible back-test method. This verion might be a little off, but at least I'm thinkin', right? :P

Thanks for all your help. I've learned so much here and I feel like I've just begun!

-Josh
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