Sunday, January 15, 2017

Waiting for Buy Points

At this time, I am cautiously optimistic and making small purchases to add to or initiate new positions.

My late father-in-law used to calculate a reasonable buy price for a stock, put in a good-til-cancelled limit order, wait until the order was filled.   Although he sometimes missed out on stocks that ran higher, his system was a good one since he consistently outperformed the S&P index on an annual basis.

Lately, I've applied that approach to many of the stocks I am considering for purchase. However, I am not as rigorous at calculating a buy point based on fundamental factors. I base my target price on a combination of  technical factors and qualitative business assessments.

Using this methodology, I've been able to acquire some stocks at or near 52 week lows, despite the indices being at or near all time highs.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

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