Don’t Buy Stocks Before Your Purchase Price
A great example of why you do not want to buy a stock before it hits your pre-designated purchase price can be found today with CLF. CLF was a featured stock pick last night.
The notes for CLF were the following:
“CLF @ $109.10
$106.90 (2% stop)
$120 (10% target)”
The stock closed yesterday at $106.60 and today is down some 6% trading below $100 a share. If you would have bought CLF this morning thinking, “there is no way this stock is going down. I might as well buy it before it breaks out and make the extra money.” You lost.
Being patient is extremely critical in the stock market. Timing is everything.Â
More on this topic
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Philip Falcone's Harbinger Capital Partners Sells More Cliffs Natural Resources (CLF) - Amended 1...
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Cleveland-Cliffs Taps Into Emerging Market Steel Demand with $10 Billion Buyout of Alpha Natural ...
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Feature on Harbinger Capital's Philip Falcone
(market folly, 7/21/08)
I was disappointed as well with CLF performance today.
It seemed broadband on the commodities selloff.
However, I don’t think you can fight the unemployment number (consumer), then the GDP growth which keeps growing positive.
So I ran 3 charts:
UYM, UPW, DIG
(since BSC bottom March timeframe)
Then compared with UYG chart (financials)
It’s an endless battle but ….that being said. From a sector play I can’t deny that CLF might have just presented a buying opportunity today or soon, worth keeping an eye on.
Sage advice…..but when is STTG going to get disqus comments???? We’re dying out here
why not just grab USO and call it a day?