In a bear market there is no reason not to try and buy your stock at it’s 52 week low. This does not mean the stock won’t go lower than this but at least you got it at a point that most are too impatient to wait to get.
Remember though….
If your stock is at it’s 52 week low there is definitely something negative going on with that stock. If the whole market is down and your stock is down that is one thing but if it is just your stock down then you should really be careful.
Remember don’t buy the whole amount you want but cost average in. Buy a quarter of the amount you plan on buying and if goes down below the 52 week low by a quarter more.
Example
If you want to buy a 100 shares of say zooma(made up company) and zooma is at it’s 52 week low, then buy 25 shares now. If it goes lower buy 25 more shares and if it goes even lower buy 25 more shares and so on.
Nomatter how fast the stock market is going down it usually changes direction at 10:30 am at least for a moment.
It is also true if the stock market is going up it will change direction for for at least a moment at 10:30am.
If you are up more than 30% in a stock you have to sell…..
I could kick myself for not selling Goldman Sachs when it was up 40%
When all other stocks were going down this stock was going up. It seemed like a miracle cure to the problems in the market. I heard it one time, like it was a secret, accidentally mentioned about on CNBC. I started using it and right away I was awarded.
I had heard about people shorting the market and how much money they were making but my online broker accounts didn’t offer it. Shorting is for advanced stock traders they would state. So these advanced stock traders were making money while all the excited amateur stock traders were losing it.
Then I heard about SDS a Proshares ETF that shorted the S&P 500. When the S&P 500 went down this stock went up.
I bought it accidentally at the right time because everyone was complaining about losing money and all my stocks were going down except one, SDS. I would sell it after I made a certain percentage and when the market went up I would buy it back.
Everything was perfect I was in synch with this stock. Until I got greedy and I saw another Proshares stock that seemed to follow the same path as SDS but for some reason made way more money. So when the market went up and SDS went down I decided to instead buy SRS. SRS was a proshares stock that actually shorted real estate. Unlike the perfect luck I had before for some reason real estate had a miraculous comeback and the stock that I thought would go up fell like a brick.
I sold quickly but not before I was blown away by how fast this thing could drop.
It through me off of my game and I have not played them since.
Jim Cramer was talking about these Proshare stocks and he hates them because if you hold them for any of length of time they will not do what people think they will.
If you think you can handle this wild horse try them out. But I will warn you don’t hold onto it to long or you will be thrown off it.
Buy close to a stocks 52 week low…
Don’t buy all the shares at one time…
Buy more shares if it loses half it’s value
If it loses half of that sell all shares
if your stock goes above 30% sell it
make your own rules and follow them
oneitis is a term used to describe when someone focuses on one person or thing and forgets about everything else going on.
Usually the person or thing does not help you and you also lose all the opportunities around you.
I do this sometime to a stock that is annoying me or that I want to fall or rise to a certain price. By concentrating on that stock for a few days I miss all the other great deals.
There are so many metaphors that come to mind so I will just let you think of one.
This is the opposite though of looking through a rolled up piece of paper and viewing a Bierdstadt landscape painting.
I think it was Jim Cramer..
I tend to think that is right since over the weekend is when all of the weird stuff happens like bailouts.
Doesn’t mean you can’t find a good stock…
I thought about this but I usually try to wait until I am down more than 30%…
This is still in the experimental phase too…
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