You are describing trading, which is different than investing.
There are different theories to profit maximization on trading:
1) Buy the dip, sell enough to pull out the initial investment and let the profit ride.
2) Buy the dip, sell everything. Do this again on the next dip. Rinse. Repeat.
3) Buy the rip, let it ride, once the hot streak is over, sell and forget. Also called momentum trading. Jesse Livermore used this to great effect.
4) Buy the dip, watch it fall further. Set a stop loss. Get stopped out.
OR
5) Find a great stock. Buy. Wait until it's gone up 5-10x sell, even if it takes years. Repeat. Also called long term investing.
Obviously, if you can do #1, 2, or 3 reliably, you can earn a lot of money. If #4 happens too often your initial capital can go to zero. This is why smart investors, IMHO, chose #5. If you've got a winner, ride that horse until it dies. Here is an example of how one mustacian rode Apple to millionaire status:
https://forum.mrmoneymustache.com/investor-alley/all-my-eggs-in-one-basket/