Would You Buy It Right Now, at Its Current Price?
In a perfect world, a computer could monitor hundreds of variables, from interest rates to politics, to constantly reevaluate your portfolio. In the real world, you can simply ask yourself periodically, “Would I buy this stock now?” Here are some questions with which to start:
My price objective has been reached. Would I buy it again at this price?
My price objective has not yet been reached. Would I buy it here even though I missed the first few points?
The market has stalled. Is my stock still looking good on its own?
News has come out. Did my stock react properly to it?
There are many reasons to sell a stock or a market. Most of them can be distilled down to the technical condition of the stock ...
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