A friend said to me this week “Darn that market, too late to buy now”. My response was “I wish I knew”. The fact of the matter is people get scared to enter the market when stocks are low because of all the bad news around. Then of course they won’t buy the market after it has gone up because they say prices are too high and rightly or wrongly assume we have missed the rise. My response is as allows we don’t know when we are at bottom, middle or top. You have to look at it from a money management point of view.
The last few weeks I have been talking extensively about money management because when you are heavily invested as you should be by now then the order of the day should be money management and risk control. Even now it’s not too late to buy equities I don’t know where the top is. As I have said many times before risk management is key and I have outlined the techniques to protect your wealth and limit your risk. If you have ignored all my advice and not bought when we had the follow through day at the start of September it is still ok to invest. Find those companies breaking out on volume and start buying slowly. Build up your positions as they increase in value and sell out and step to the sidelines if indeed the market is at a top.
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.
BIDU - $107.77
ROVI – $50.47
KVHI – $15.97
HMIN - $51.27
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