RE: Beginners Questions
Quote:It's a good question, but unfortunately there is no definite answer. In my Q&A with Weinstein recently he said: "I suggest doing secondary buying when a stock pulls back close to the breakout point, and you then see it stabilize near that level."
So it's a judgement call on whether you think the stock has stabilized and something for my list for us to explore on here. Personally, I tend to identify the area of support and then watch for a stock to make a new potential swing low in that area. I determine this by the stock making higher close and then closing the following day above the previous days high. i.e. it's stopped making lower highs and has made a higher high, as well as a higher close, and so has in the very short term at least stabilized a little. There are many other ways, but that's what I look for, as well as obviously watching what the broad market is doing, as it has very big effect on most stocks intra-day movements.
Since the question just came up, I thought I would post this here- What do you guys think about a pullback entry. I'm not sure as it has already breached support..but, I like what you said ISA about waiting for a higher close tomorrow than today's high. I usually just play it by ear as watching the broad market as you said isa but generally pull the trigger without waiting for a definitive close above previous high. I haven't been around very long so it is nice to read that tip-
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