What criteria must be met before you buy a stock?

[gamefisherman]

Entering at the right price is obviously critical as we believe you make your profit when you buy............

We were wondering what your indicators or conditions are that must be met before you buy a stock?

And Thank you for all your help, talk about a steep learning curve.......

Cheers

 

[Aussiest]

What are yours? A lot would say that's it about management once you're in the trade.

 

[haunting]

My 2c - good entry determines the odds/risk and the basis for exit, good exit will determine your profit.

 

[gamefisherman]

We are only newbies and very green to buying online on the asx......only 7months of experience........so we have loads and loads to learn.......

At present, we look for volumes, what is the overall trend, resistance and support levels of which we are still trying to work out what they are...lol, announcements, commentaries on here and other sites, and to be honest not much else at this point, that is why we are looking to discover which stock to buy and when.......and what others look for....

Agree it is what u do once in too..........have a tight stop loss and dont be greedy is our thing..................

 

[Timmy]

we believe

We were wondering

We are only newbies ........so we have loads and loads to learn.......

we look for volumes,

Off topic I know, but why the use of the royal "we" gamefisherman? Just curious.

 

[gamefisherman]

We means my partner and I, she is the brains full stop...lol lucklily someone in the house is smart..............

I am just there for the ride......

PS yes off the topic and as for royal wtf , we are just a couple of aussie battlers mate with kids trying to make a buck

 

[brty]

What criteria must be met before you buy a stock?

The price must be going up. Resistance broken support holding. Most of the other stuff is noise, but you can trade noise when you know what you are doing. Also need to acknowledge that in the long term all stocks go to zero.

brty

 

[Timmy]

PS yes off the topic and as for royal wtf ,

Referred to as the 'royal' we because when a person speaks of him or herself as 'we' it is usually because they are royalty! Off topic, I know, like I said just curious. More info here if of any interest.

We are only newbies and very green to buying online on the asx......only 7months of experience........so we have loads and loads to learn.......

At present, we look for volumes, what is the overall trend, resistance and support levels of which we are still trying to work out what they are...lol, announcements, commentaries on here and other sites, and to be honest not much else at this point, that is why we are looking to discover which stock to buy and when.......and what others look for....

Agree it is what u do once in too..........have a tight stop loss and dont be greedy is our thing..................

One thing I would strongly urge you is to avoid market commentaries, or only to pay them the very vaguest of attention, especially in the learning stage. It is much better to look at the data and apply your own assessment. Of course, learning how to sensibly assess the data is a challenge, but asking question on threads such as this one is a good learning process.

I found the VSA approach to the buy, sell and ongoing management decisions very useful. It is a steep learning curve, take plenty of time (I don't think there is any substitute for taking the time).

There is a firm that markets software/education etc. I didn't buy the software or any of their education but downloaded a free copy of their basic book "Master the Markets" (fully legal download, will try to find the link for you if you are interested). Like I said, it takes time, but I found it useful.

 

[Sean K]

Questions.

What's your investment horizon?
What's your appetitie for risk?
How much time do you have to manage the portfolio?
Are you after dividends and some growth?
Do you want to short term trade?


Too many questions...

 

[springhill]

We are only newbies and very green to buying online on the asx......only 7months of experience........so we have loads and loads to learn.......

At present, we look for volumes, what is the overall trend, resistance and support levels of which we are still trying to work out what they are...lol, announcements, commentaries on here and other sites, and to be honest not much else at this point, that is why we are looking to discover which stock to buy and when.......and what others look for....

Agree it is what u do once in too..........have a tight stop loss and dont be greedy is our thing..................

Spot on Timmy, always take commentaries & posts with a grain of salt.... plenty of agendas in these

 

[prawn_86]

When investing longer term i look to buy stocks that are under my calcualtion of intrinsic value.

The question is, what makes intrinsic value? As i have been wrong plenty of times...

 

[beamstas]

When investing longer term i look to buy stocks that are under my calcualtion of intrinsic value.

The question is, what makes intrinsic value? As i have been wrong plenty of times...

Is there any proof this actually works?

 

[prawn_86]

Is there any proof this actually works?

Works for me, so i couldnt care if it "works" or not...

 

[Uncle Barry]

Good afternoon.
The longer I am in the Market, the more I understand there are NO Rules to entry/buying, simply because every stock is different.

However there are Rules to a exit,
in my World of makeing a dollar or three from the Market.

Kind regards,
UB

 

[Timmy]

Is there any proof this actually works?

His name is Warren Buffett. Done quite well, apparently.

 

[beamstas]

His name is Warren Buffett. Done quite well, apparently.

Yet if i use his rules to buy stocks i bet i won't end up where he is.. strange isn't it?

People should read Talebs books, before deciding to invest like buffett.

 

[mazzatelli]

Yet if i use his rules to buy stocks i bet i won't end up where he is.. strange isn't it?

People should read Talebs books, before deciding to invest like buffett.

If TH gave me all his rules, I probably wouldn't be able to replicate him either

 

[nunthewiser]

Yet if i use his rules to buy stocks i bet i won't end up where he is.. strange isn't it?

.

my whole point entirely regarding all these book quotes that get bandied around the forums ..

thanks for finally pointing it out also

one must find there OWN path .

 

[Aussiest]

one must find there OWN path .

Agreed. However, would you not say it is sensible to first read the books and then test the theories against real market action?

Personally, i feel isolated by the books as they are not personalised. I have probably learned more from ASF and relating it to some theory, than i have in books alone.

Moral of the story: never take information at face value.

Sorry to OP, :topic

 

[nunthewiser]

Agreed. However, would you not say it is sensible to first read the books and then test the theories that you have learned in them, against real market action?

Personally, i feel isolated by the books as they are not personalised. I have probably learned more from ASF and relating it to some theory, than i have in books alone.

Information needs to be tested and tested again. Never take information at face value..

yes by all means read a book . many gems found that may assist with other points of trading , my thoughts are tho , one cannot follow the methods/rules strategys in said books and be realistic that they will have the same sucess , the book was written by the author who maybe found what works for them and unless the reader/follower of the strategys is a clone of said author ( psycholigical etc etc ) the reader will not get the same results no matter how many they read.

re ASF . amen to that actually .. so many methods and tales all mingled into one place ( good and bad ) but at least one can read a bit of honesty also and see that it aint all sunshine and lollipops out there .

totally agreed re info and face value