This Strategy is quite logical and would be beneficial to traders. The truth is that to be a good trader one needs to be patient and calculative. The market can even seem to be very difficult, despite this tactics. This could be due to excessive dumps which could render ones trading capital in the negative.
Its not easy to become a trader and can give you headaches once you made a wrong decision.
Thats why having a plan and strategy for a worse situation is best.
Diversifying and when to stop loss are necessary to avoid losses.