02-09-2016, 07:21 PM
(02-09-2016, 06:03 PM)gymchamp Wrote: lol heard that story beforeYou sounded pretty excited Friday...and even more so Monday. Just seems like a common theme in every forum I read. Everyone prays for these great stocks to drop. But when they finally do no one ever pulls the trigger always rationalized by hoping to get a better price, no rush, etc. and then kick themselves later when they miss an opportunity. Obviously you have to do what's right for you and this is not a knock on you specifically just seems super common.
True you may get better prices on SBUX, NKE, V but waiting because prices may go lower seems like trying to time the market. Feel like people are better off just buying great stocks on dips and holding forever. All those stocks are off quite a bit from their highs and if they do drop more it's just an opportunity to add even more
Disney down 6% after hours after crushing earnings. Curious who's backing up the truck and who's waiting because maybe "prices will get more favorable in the short term"
Each company on your watchlist should have a buy price (ie the company is eligible for purchase if it is trading at or lower than its buy price). The only time you can adjust the buy price is after earnings or a major news event. This approach takes some emotion out of the equation. The only time I generally break from this approach is if earnings are imminent and the company is hovering right around the buy price (I'm currently going through this issue with VTR and OHI).
The problem with the stocks mentioned (SBUX, NKE, V) is that they are still ridiculously overvalued. NKE and SBUX would need to fall 30-35%, and V 7% before I'd become interested in them. I'm interested in DIS at ~$83-$84, which it could (and hopefully will) hit soon.