• Australian (ASX) Stock Market Forum

Hello and welcome to Aussie Stock Forums!

To gain full access you must register. Registration is free and takes only a few seconds to complete.

Already a member? Log in here.

What criteria must be met before you buy a stock?

Discussion in 'Beginner's Lounge' started by gamefisherman, Aug 8, 2009.

  1. gamefisherman

    gamefisherman

    Posts:
    59
    Likes Received:
    0
    Joined:
    Dec 26, 2008
    Entering at the right price is obviously critical as we believe you make your profit when you buy............

    We were wondering what your indicators or conditions are that must be met before you buy a stock?

    And Thank you for all your help, talk about a steep learning curve.......:)

    Cheers
     
  2. Aussiest

    Aussiest

    Posts:
    745
    Likes Received:
    0
    Joined:
    Jul 21, 2008
    What are yours? A lot would say that's it about management once you're in the trade.
     
  3. haunting

    haunting

    Posts:
    97
    Likes Received:
    0
    Joined:
    Jul 11, 2005
    My 2c - good entry determines the odds/risk and the basis for exit, good exit will determine your profit.
     
  4. gamefisherman

    gamefisherman

    Posts:
    59
    Likes Received:
    0
    Joined:
    Dec 26, 2008
    We are only newbies and very green to buying online on the asx......only 7months of experience........so we have loads and loads to learn.......

    At present, we look for volumes, what is the overall trend, resistance and support levels of which we are still trying to work out what they are...lol, announcements, commentaries on here and other sites, and to be honest not much else at this point, that is why we are looking to discover which stock to buy and when.......and what others look for....

    Agree it is what u do once in too..........have a tight stop loss and dont be greedy is our thing..................
     
  5. Timmy

    Timmy white swans need love too

    Posts:
    2,930
    Likes Received:
    0
    Joined:
    Sep 30, 2007
    Off topic I know, but why the use of the royal "we" gamefisherman? Just curious.
     
  6. gamefisherman

    gamefisherman

    Posts:
    59
    Likes Received:
    0
    Joined:
    Dec 26, 2008
    We means my partner and I, she is the brains full stop...lol lucklily someone in the house is smart..............

    I am just there for the ride......:)

    PS yes off the topic and as for royal wtf , we are just a couple of aussie battlers mate with kids trying to make a buck
     
  7. brty

    brty

    Posts:
    948
    Likes Received:
    122
    Joined:
    Mar 5, 2008
    The price must be going up. Resistance broken support holding. Most of the other stuff is noise, but you can trade noise when you know what you are doing. Also need to acknowledge that in the long term all stocks go to zero.

    brty
     
  8. Timmy

    Timmy white swans need love too

    Posts:
    2,930
    Likes Received:
    0
    Joined:
    Sep 30, 2007
    Referred to as the 'royal' we because when a person speaks of him or herself as 'we' it is usually because they are royalty! Off topic, I know, like I said just curious. More info here if of any interest.


    One thing I would strongly urge you is to avoid market commentaries, or only to pay them the very vaguest of attention, especially in the learning stage. It is much better to look at the data and apply your own assessment. Of course, learning how to sensibly assess the data is a challenge, but asking question on threads such as this one is a good learning process.

    I found the VSA approach to the buy, sell and ongoing management decisions very useful. It is a steep learning curve, take plenty of time (I don't think there is any substitute for taking the time).

    There is a firm that markets software/education etc. I didn't buy the software or any of their education but downloaded a free copy of their basic book "Master the Markets" (fully legal download, will try to find the link for you if you are interested). Like I said, it takes time, but I found it useful.
     
  9. kennas

    kennas Searching

    Posts:
    13,190
    Likes Received:
    55
    Joined:
    Apr 21, 2006
    Questions.

    What's your investment horizon?
    What's your appetitie for risk?
    How much time do you have to manage the portfolio?
    Are you after dividends and some growth?
    Do you want to short term trade?


    Too many questions...
     
  10. springhill

    springhill Make the drill work for YOU

    Posts:
    2,555
    Likes Received:
    2
    Joined:
    Jun 20, 2007
    Spot on Timmy, always take commentaries & posts with a grain of salt.... plenty of agendas in these
     
  11. prawn_86

    prawn_86 Mod: Call me Dendrobranchiata

    Posts:
    5,843
    Likes Received:
    4
    Joined:
    May 23, 2007
    When investing longer term i look to buy stocks that are under my calcualtion of intrinsic value.

    The question is, what makes intrinsic value? As i have been wrong plenty of times...
     
  12. beamstas

    beamstas

    Posts:
    1,037
    Likes Received:
    0
    Joined:
    Sep 2, 2008
    Is there any proof this actually works?
     
  13. prawn_86

    prawn_86 Mod: Call me Dendrobranchiata

    Posts:
    5,843
    Likes Received:
    4
    Joined:
    May 23, 2007
    Works for me, so i couldnt care if it "works" or not...
     
  14. Uncle Barry

    Uncle Barry

    Posts:
    169
    Likes Received:
    0
    Joined:
    Feb 25, 2007
    Good afternoon.
    The longer I am in the Market, the more I understand there are NO Rules to entry/buying, simply because every stock is different.

    However there are Rules to a exit,
    in my World of makeing a dollar or three from the Market.

    Kind regards,
    UB
     
  15. Timmy

    Timmy white swans need love too

    Posts:
    2,930
    Likes Received:
    0
    Joined:
    Sep 30, 2007
    His name is Warren Buffett. Done quite well, apparently. :)
     
  16. beamstas

    beamstas

    Posts:
    1,037
    Likes Received:
    0
    Joined:
    Sep 2, 2008
    Yet if i use his rules to buy stocks i bet i won't end up where he is.. strange isn't it?

    People should read Talebs books, before deciding to invest like buffett.
     
  17. mazzatelli

    mazzatelli

    Posts:
    602
    Likes Received:
    0
    Joined:
    Jul 22, 2009
    If TH gave me all his rules, I probably wouldn't be able to replicate him either
     
  18. nunthewiser

    nunthewiser

    Posts:
    4,670
    Likes Received:
    6
    Joined:
    Feb 27, 2008

    my whole point entirely regarding all these book quotes that get bandied around the forums ..

    thanks for finally pointing it out also

    one must find there OWN path .
     
  19. Aussiest

    Aussiest

    Posts:
    745
    Likes Received:
    0
    Joined:
    Jul 21, 2008
    Agreed. However, would you not say it is sensible to first read the books and then test the theories against real market action?

    Personally, i feel isolated by the books as they are not personalised. I have probably learned more from ASF and relating it to some theory, than i have in books alone.

    Moral of the story: never take information at face value.

    Sorry to OP, :topic :eek:
     
  20. nunthewiser

    nunthewiser

    Posts:
    4,670
    Likes Received:
    6
    Joined:
    Feb 27, 2008

    yes by all means read a book . many gems found that may assist with other points of trading , my thoughts are tho , one cannot follow the methods/rules strategys in said books and be realistic that they will have the same sucess , the book was written by the author who maybe found what works for them and unless the reader/follower of the strategys is a clone of said author ( psycholigical etc etc ) the reader will not get the same results no matter how many they read.

    re ASF . amen to that actually .. so many methods and tales all mingled into one place ( good and bad ) but at least one can read a bit of honesty also and see that it aint all sunshine and lollipops out there .

    totally agreed re info and face value
     
Loading...

Share This Page