Buy on the Upswing

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FTW
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Joined: Tue Feb 23, 2021 5:04 pm

Buy on the Upswing

Post by FTW »

Another technique I use is to buy a stock on the Upswing.

ALL STOCKS will go up and down in price.
I like to find stocks that have gone down from their all time high and just start going back up in value.

Now, before I go any further, let me state that I only buy stocks that have hit new highs within every two years, as least going back on a 10 to 20 year chart.

The reason for that is my age. I am too old to worry about what a stock price will be in 20 to 40 years from now.
I basically buy well known stocks that have a long history and great future. But I also don't want to sit on them for 6 months to 1 year riding the waves up and down. So, as soon as they make a reasonable profit, per share, I will place a stop loss ticket on them.

That stop loss ticket basically means that if the stock comes down a certain percent or dollar value, it will automatically sell. Well, there is no 100% guaranty that it will sell in a quick major down fall, but that doesn't happen very often.

Now, I am going to show you one of my favorite stocks to buy and sell on a regular basis.
It is Visa. And if you look at the chart, you will see the year over year growth. But you will also see the dips. So what like I mentioned earlier, I will by it when the dips start rising and hopefully sell it before it peaks and goes back down.

By the way, I ALWAYS sell a stock BEFORE it hits and all time high. But that is just my personal choice. You have to do what you are comfortable with, depending on how many years you can afford to hold a stock.
Visa-2022-11-14.png
Visa-2022-11-14.png (17.32 KiB) Viewed 61 times
This is a long term view of Visa share price.
Visa2-2022-11-14.png
Visa2-2022-11-14.png (14.1 KiB) Viewed 61 times
This is a view of Visa Stock Prices from November 2021 to November 2022. You can see all of the swings up and down. So THAT is why I buy it when it is on sale after a dip and heading back up.

By looking at the share price on the right hand side, you can see that in October, it was ripe for a $40 swing per share, from the October low to the February high.

$40 per share swing per share may not seem like much, but take that times 10 shares and you get $400. That is around a 20% potential increase on your investment. Plus they are paying a small dividend each quarter.
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