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8 Guidelines Buying New Stock

1. After the purchase of new stock, draw the line on the red graph of defensive sale page for daily or the price level weekly is right where you will sell and cut your losses. In the first 1 to 2 of a new bull market, you may want to give as much space on stock disadvantage and continues until the price has affected the sales line before taking defensive action.

The line, reduce sales loss can in some cases raised, but continued under low normal correction after your initial purchase of the first.

If you increase your point of sale, not move it too close to the current price, because any little normal weakness will you shake your stock.

If your stock has increased by 15% or more after purchase is true, moves the line sold less than 5% lower than the purchase price of pivot.

2. Your goal is to buy the best stocks with the best earnings in a timely manner and have patience until you have been proved right or wrong. You give the effect of the 13 weeks following the purchase of your first week before you conclude that the stocks have not moved is dull, damaged. This, of course, applies only if the stock does not reach your first defensive selling price.

3. All actions are close to 20% not must never be allowed leave in the loss column. For example, if you buy the stock at $50 and it takes up to $60 (20%), and you do not take advantage when you have it, there is no intelligent reason never to let it fall back all the way to $50 or less and therefore a loss. You may feel shame, ridiculous and not too light purchase of $50, watch it reaches $60 and selling at 50 $ to $ 51, but you made the mistake of not taking advantage of you. Avoid to make a mistake and it allow to develop in a loss.

4. Always attention to the common market. If you make a purchase when the average market topping and started to turn direction, you may be difficulty holding stock that are purchased.

5. Great progress takes time to complete. Do not take advantage during the first move of eight weeks, unless the stock got serious problems or have two or three weeks "climax" approach fast splitting of the stock. The stock were showing a profit of 20% within eight weeks must be implemented through eight weeks, unless they are of poor quality without institutional sponsors or groups of strong action.

6. If you have a dynamic leader or stock leader of the group, you can keep at least until the weekly closing is below the average price moves 10 weeks on increasing volume. Some exceptional leaders go about fabulous before that happens.

7. If possible, try to take stock after you already have an advantage with the first fix in the short term.

8. Keeping long-term gains at the start of a new bull market, in many cases, it may force you to remain in the position you long enough to make large profits. Remember that the purpose is not to be true, but make lot of money when you are right
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