Buy Rate

[harishna77]

Hello Team,

I am a newbie in the stockmarket scenario. I am going through financial data like EPS, Profit Margin, Charts etc and narrowed down to some stocks which have performed consistently. I am unable to determine the right time to BUY a stock. I am sure it is based on some data points and BUY RATE threshold for that stock. Anyone having any advice on that..please revert. Thanks.

 

[iamaaditya]

What you have asked is a Million Dollar Question (may be you never knew). Only if everybody knew when to Buy. There is no correct answer or say no deterministic answer, this is where more discretion comes into play (and thus seperates winning vs losing the money).

By your statement it sounds that you are a long term (alteast a medium term trader or say investor). My advice for such buying would be to spread your buying so that you catch atleast the average price in the range (and not be bothered about Highs and Lows and timing the market). It is very difficult to Time the market since the High and Low are known only in hindsight (i.e once they are no longer a top or bottom).

Though some people inclined towards position trading try to wait for market corrections (like present days) to buy (considering they are getting it cheap), I do not proscribe such buying atleast to people who are new in the market.
If you are investing in a individual stock (instead of portfolio), then timing the stock and watching sector is more important (since your beta becomes very high).

i hope you are getting my point, there is no one way and certainly no perfect way to select the buy rate. Ofcourse it is much better to have a defined criteria (say buy when stock crosses 200 MA or something with bolinger band, or P/E ratio or sales etc) but all these methods will have downfalls and certainly none of them will be 100% successful.

do let me know If i have rather confused you more than clear your view, i will try to be more articulate...

 

[iamaaditya]

By spread your buying , I meant say you want to buy 100 shares then you buy 20 shares everyweek for next 5 weeks. (or something similar)

 

[ashwani chadha]

best buying strategy is long term support leval at which stock comes once in three months,second best is eod support leval,which comes in every 15 days,if u mention any particular stock/commodity, i can tell you its support levals from where one can enter safly for long term position trading

 

[RAGHUERK]

Dear Ashwani Chadha Sir,

I am interested in investing some money into Infosys, L & T, SBI and BHEL, so as to build a portfolio for the long term. Sir, if you can just let me know the long term support levels for these scrips so that I can purchase these shares at the support levels.

Thanks in Advance.


RAGHUERK