Compounding stock question

Been studying stocks for about a year now, here's my question:

Scenario A: You buy 1000$ of stock ABC which goes up 10% over 5 days 2% per day. You close out your position at the end of the 5 days.

Total account worth: 1000 + 10% = 1100$

Scenario B: You buy 1000$ of ABC, but you close out your position every night, and reinvest it including your earnings the next day. Therefore You would make

1000 + (1000 * 1.02) five times over IE compounded. Yielding 1104.08$

Is my math off or is it my correct assumption that somehow reinvesting all of your capital every time over night gives you a compound effect as opposed to holding onto your stock? Am I missing something? Thanks

Submitted February 18, 2016 at 04:11PM by averylongdream http://ift.tt/1TpipSW