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. 

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Comments on "Don’t Buy Stocks Before Your Purchase Price" are closed unless our forms appear below.

Comment by RayJMan

2008-06-10 16:45:18

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.

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Comment by Blain Reinkensmeyer

2008-06-11 13:39:52

why not just grab USO and call it a day?

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Comment by Andy Swan

2008-06-11 10:49:45

Sage advice…..but when is STTG going to get disqus comments???? We’re dying out here

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