>>> Your thoughts on sell and buy back plays please. <<<
Bearcatbob,
This is a very difficult question to answer because it depends. It depends on the "condition of the market." It depends on whether the stock is in a trading range or trending higher. It depends on the amount of profits one has. It depends on the amount of risk one is willing to take. It just depends!
Without going into specifics, since none were asked, I will give some "general" ideas. I don't use a rigid "black box" approach.
If a stock is in a trading range, you buy support and sell resistance.
If a stock is in a strong uptrend, you must look and see where the stock provided support on two or more profit taking opportunities during its uptrend. If you notice that the 20 day exponential moving average had served as strong support, that's where you buy it if it bounces off that support yet again.
Here's a stock I currently own, buying it after it bounced off the support level represented by the 20 ema. Other stocks may respond to other moving averages. You have to test them to find out where strong support is for each stock.
stockcharts.com[h,a]daclyiay[pc20!f][vc60][iut!La5,17,9!Lj[$spx]]&pref=G
I will sell it once I see a reversal pattern and I will buy it back once it successfully tests support again.
So, to answer your question, sell and buy back plays depend on a number of criteria. You need to know in advance what they are and know what to look for.
dabum |
