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When we send a trade alert to buy a stock, it can actually move the stock price.
If many readers decide to buy all at once, it can lead to the price going up in a matter of minutes!
That’s why you could see stock prices higher than your buy range. Be prepared for this to happen.
One way to combat this: Rule No. 3: Build your positions over time.
You can build your position over a few days, weeks or months — depending on how much you plan to invest.
When you’ve decided to buy, you can simply invest a small amount of money in the stock, wait for the stock to “bottom out” or settle itself over time and then buy more shares.
Buy when the stock hits your price target range.
While we can’t guarantee that the stock will come down to hit the exact price you want, this will generally give you a better average entry price for your position.
Timing your buys is a key factor for successful investing.
When the market opens, big institutions are the ones that make up the most trades.
These big-money buyers can significantly bid up the prices, which could negatively affect our returns if we buy at the higher price.
To offset this, we want to come in when the prices for small buyers are optimal. This usually happens between 11 a.m. and 3 p.m., and that’s the time we usually suggest buying into your positions.
To that end, never buy more shares than you set for your equal-weight marker in Rule No. 2.
Now, today’s market offers a lot of irresistibly low buy-in opportunities. So, use these Rules of the Game to guide you and build your positions.
We know a lot of you are looking for these buy opportunities. Check out Paul’s reaction to that here:
And we fully believe this will lead you to Rule No. 4, coming your way tomorrow. 😊
Regards,
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