Wait for the Right Moment To Buy
Once I’ve done my technical and fundamental analysis I assess the stock’s current position. If the stock market today currently sells at the top of its selling range, near the resistance level, I’m happy to be patient and wait for the stock to fall back to its support level and pick up a few thousand shares at a steep discount over premium pricing.
Of course, sometimes we all get it wrong and the stock market today breaks through its resistance level. Not the time to jump in hoping to make up for your mistake. You didn’t make a mistake because you didn’t lose anything. And another opportunity always awaits tomorrow.
The point? You do all of your homework and find the stock that suits your investment objectives and style (buy and hold, for example). That DOESN’T mean you take a position immediately. Examine recent buying and selling activity – volume on up days, support and resistance levels and all of that invaluable (but dust dry) information in the prospectus.
When the technical analysis makes sense in terms of your fundamental analysis and vice-versa, that’s the best buy signal you’ll ever see with the stock market today.