This document outlines strategies for buying individual stocks, including portfolio management, establishing positions, pyramid buying, and placing orders. It recommends holding 5-8 stocks depending on portfolio size, with initial purchases of 50% of the position size and subsequent buys of 30-35% and 15-20% as the stock price increases 2-2.5%. It also discusses using buy stop limit orders and screening for stocks with current volume over 150% of the average daily volume while watching for buying opportunities.
This document outlines strategies for buying individual stocks, including portfolio management, establishing positions, pyramid buying, and placing orders. It recommends holding 5-8 stocks depending on portfolio size, with initial purchases of 50% of the position size and subsequent buys of 30-35% and 15-20% as the stock price increases 2-2.5%. It also discusses using buy stop limit orders and screening for stocks with current volume over 150% of the average daily volume while watching for buying opportunities.
Original Description:
Buying strategies for CANSLIM method.
A MUST READ for stock investors.
This document outlines strategies for buying individual stocks, including portfolio management, establishing positions, pyramid buying, and placing orders. It recommends holding 5-8 stocks depending on portfolio size, with initial purchases of 50% of the position size and subsequent buys of 30-35% and 15-20% as the stock price increases 2-2.5%. It also discusses using buy stop limit orders and screening for stocks with current volume over 150% of the average daily volume while watching for buying opportunities.
This document outlines strategies for buying individual stocks, including portfolio management, establishing positions, pyramid buying, and placing orders. It recommends holding 5-8 stocks depending on portfolio size, with initial purchases of 50% of the position size and subsequent buys of 30-35% and 15-20% as the stock price increases 2-2.5%. It also discusses using buy stop limit orders and screening for stocks with current volume over 150% of the average daily volume while watching for buying opportunities.
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IBD Buying Strategies
Northern Virginia Meetup Group Apr 25, 2007
Tonights Topics Portfolio Management Establishing Position Pyramid Buying Placing Orders Putting it all together Buying Strategies Excel Spreadsheet On-line Brokerage Screen Portfolio Management Portfolio Size Suggested Number of Stocks (end result)
$100,000 to 1 Million 5 6 Stocks
$1 Million to 5 Million 6 8 Stocks
Over $ 5 Million 7 8 Stocks
Establishing Position Scenario: $100,000 Portfolio 5 stocks (end result) $20,000 for each position
1st Buy = 50% of $20,000 = $10,000
2nd Buy (up 2-2.5%) = 30-35% of $20,000 = $6,000
3rd Final Buy (up 2-2.5%) = 15-20% of $20,000 = $4,000
Pyramid Buying Beyond 5%
5% past Pivot Point 20%
2-1/2% Past Pivot Point
30%
Pivot Point 50%
Placing Orders Place 1st order manually Watch the price Measure the volume Use Buy Stop Limit Orders for 2nd & 3rd buys. Volume Looking for Current Volume greater than 150% of Avg Daily Volume Volume Looking for Current Volume greater than 150% of Avg Daily Volume Avg Daily Volume changes everyday Volume Looking for Current Volume greater than 150% of Avg Daily Volume Avg Daily Volume changes everyday IBD Stocks on the Move Volume Looking for Current Volume greater than 150% of Avg Daily Volume Avg Daily Volume changes everyday IBD Stocks on the Move Delayed approximately 20 minutes. Volume Looking for Current Volume greater than 150% of Avg Daily Volume Avg Daily Volume changes everyday IBD Stocks on the Move Delayed approximately 20 minutes. ScottradeELITE quote show realtime price and Volume Putting it Together Screen my Watch List for Potential Opportunities Use Excel spreadsheet Portfolio Management Pyramid buying Buy Stop Limits Orders Volume Calculations Excel Spreadsheet On-line Quotation from ScottradeELITE Thank You