We have another good week in spite of bad news everywhere. Continue to ignore the news and watch the trend since the stock market reflects not what is happening today but what will happen in the future. Some sideways action on low volume would not go amiss at this point to allow the stock market to consolidate recent gains. In fact a small pull back on low volume would be fine. Of course a pull back on volume could spell the end.
In the past I have likened the money management strategy I use to planting seeds in a garden and watching them grow into big trees. To have a good forest you need to plant lots of seeds. Every new company purchase is the planting of a seed and adding to existing positions is fertilizing those seeds and watching them grow. Remember the intention is to keep adding to seeds that grow (the stocks that rise) and allow the bad seeds to die away (let non performing stocks be stopped out). This strategy allows you to pour your money into the performing stocks. Of course you have to keep planting those seeds (buying new companies) to find the winners. Remember any new purchases you need to control your risk by waiting for them to rise and raising your stops to breakeven before you make new purchases.
Like you I continue to add as the stock market continues to climb. We cannot know where the top is but must continue to invest into the uptrend. If the market reverses on volume then we will get safely stopped out of our purchases with little or no loss.
Here are a few more stocks performing well and looking ready to move higher if the stock market holds up. Make sure as always that earnings are not imminent for any new purchases. Remember this blog site is not a newsletter that promotes stock tips or penny stocks rather the idea is to teach stock selection with low risk advice.
NFLX - $140.50
AAPL - $274.90
PAAS - $28.41
ACOM - $21.00
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment