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Silly poll for fundamental investors: How do you decide exactly when to buy a stock?


Fundamental investors despise the concept of timing, but they have to buy some time. I'm totally a technical trader, so I just wondered how you folks decide exactly when to buy. The possibilities I've come up with are:

a. The second I have cash or margin available to make the purchase.
b. When the stock pulls back x per cent
c. When the stock makes a new low for the month, year, decade, etc.
d. When the stock makes a new high
e. On good news
f. On bad news
g. I don't decide, leave it to broker/advisor/money manager to decide
h. Other

I forgot to say to pick one or more of the "timing" methods in the list. I wasn't really asking for investing methodologies but I know you fundamental investors can't help yourselves!

h. a variety of ways.
1. If a stock becomes overvalued, I replace it.
2. If, upon periodic evaluation, I can show that a better opportunity in terms of likely long term return exists with less risk.
3. If the portfolio undergoes a singularity, I check to determine if the portfolio is still holding the best priced low risk stocks. The measure of which tends to exceed my patience with writing a post. That would actually be a technical measure since it has to do with price curves rather than fundamentals. They occur very infrequently but tend to last quite a while.
4. I use Kaizen as a method of process improvement, so I also update the portfolio if I can show a process in use is inferior to other processes and then remove securities purchased under the inferior process.

I happen to participate in a stock picking game and it mimicks my real portfolio. You can decide if one should use fundamentals or not. It is at http://www.marketocracy.com/cgi-bin/WebO...

I never buy stocks at 52 week lows...there is a reason that stock is cheap...it's because it sucks.

Investors Business Daily (IBD) teaches you how to determine the exact buy point of a stock. Willaim O'Neils book, The SUccessful Investor, is a great resource. If you check out Monday's edition of the INvestors Business Daily newspaper (or investors.com) you can see the IBD100 list...they occassionally draw black boxes around certain stocks that are at or close to their proper buy point.

I buy at various times...sometimes the stock finds support at its 50 day moving average, sometimes even when a stock breaks out on super high volume...though I miss the boat, at times there is still a lot more upside to the stock.

Last week I was looking at IBDs Thursday edition and came across the top 200 stocks per IBD. "ERS" was #1. Though, the stock had already shot up, I took a chance and bought it around $16.70. The industry this stock was in was a top rated industry according to IBD. The stock kept going and now I'm up about 21% in < 1 week!

http://finance.yahoo.com/q/bc?s=ERS&t=5d...

I would buy stocks that are close to 52 high or 5 percent higher only if the market is on a uptrend.

Like for right now, I am on the sideline.

I like to buy unloved profitable micro or small cap stocks. Most likely on the rebound from lows. Usually will have P/E ratio's that are less than half of industry norms. Sometimes you are quickly rewarded, other times you might have to wait months or years. As long as they are increasing revenues and bottom line, I would stick with the investment. NEVER MORE THAN A FEW PERCENTAGE POINTS OF MY INVESTABLE NET WORTH.

As for your Technical trading, I have tried to use it and read many books on it, but it always comes back to me that it is great for explaining the past and not so hot for the future. However it does sometimes give a little bit of extra confidence when using FA, but not enough. Wish I understood it better.

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