How I Attempt to time Buy Trades
Big THANKS to regular Reader Jim (that’ll be the prunes, mate) who gave me the idea for this Blog during an email discussion we were having. In essence we were discussing how I go about timing my Buy Trades (please note, this Blog doesn’t really address Sell Trades although at the nub of it they will be partly the opposite in practice), and it struck me that this was a great subject for me to drone on about and that many Readers might find it helpful (especially if insomnia is your particular affliction).
Breaking with my recent lazy tradition of just ripping into my Blogs and hitting the keyboard from a blank sheet of Microsoft Word, I have actually done a Plan for this one and as a consequence you might notice a little more structure. This is exemplified by me having a section that talks about the Principles behind my Buys and then a section that goes into the Practice of actually doing it.
Like so many things regarding the task of Investing, it really isn’t easy to do in practice but if you can find those relatively rare ‘Long Term Buy & Hold’ (LTBH) Stocks, that just have a habit of going up year after year and also paying you a decent Dividend, then you will have a very easy and very prosperous life (especially if you slam some Leverage on it as well but that’s another matter !!).
To an extent I am looking for Stocks like this but in practice I recognise that apart from the fact they are not too common, they tend to do well for a few years and then the performance drops off. The ones that have pretty much risen for 10 years or more are exceptionally rare.
Welcome to my Educational Blog Page - I have another 'Stocks & Markets' Blog Page which you can access via a Button on the top of the Homepage.
Please see the Full Range of Book Ideas in Wheelie's Bookshop.