What about simply target/alerting stocks to when they hit bottom/52 week low?

After losing 200$ instantly… I realized it was WELL worth my while to pay for the good advice of stocktraders. But a general question, what do you think about simply setting target-alerts for 52 week lows and patiently waiting until things bottom out, before buying in a convervative $ but high growth potential strategy? I’m following a number of reports and newsletters for rare earth and metals, and actually what i’ve started to do is just when a company or report comes my way.. (always glowing good news it seems) i set the alarm for the 52 week low. One company I’m watching this way is Mountain Boy Minerals (MTB), which has bottomed out and continues to drop.

Marked as spam

Asked on March 6, 2021 9:55 am

0 views

▲

▼

✔

Private answer

Hi Glen,

Not a fan of this strategy. It is trying to time the market and catch the bottom which rarely works out for investors. It may work for some very highly volatile companies, but you are essentially betting on stocks to drop - that isn't an approach I am interested in.

If you invest in good stocks, chances of them going to 52-week lows aren't high. Then, you'll lose out on the potential of real gains. Likewise, if a stock hits 52-week lows - there may actually be something fundamentally wrong with the company. That would be reason for concern IMO. If its on your watchlist and you don't think there is anything wrong with the fundamentals of a stock, then sure - it would be a good time to jump in. However, building an investing strategy is more so for traders and even at that, they have limited success.

Many investors have tried to time the markets - as mentioned, it rarely works out. Buy good quality companies and you'll be find in the long run. In fact research has shown that buying at 52-week highs outpeforms buying at 52 week lows. Why? Winners tend to win and losers tend to lose.

Mat

Marked as spam

Posted by Mathieu Litalien

Answered on March 7, 2021 7:49 am

« Back to Previous Page