Why is it that whenever i buy a stock,immediately it starts drifting down.whether my timing is wrong?

Question

no specific area to be questioned

Answer 1

INVEST IN PARTS-I MEAN USE THE ACCUMULATION STRATEGY. DON'T BUY ALL THE SHARES IN ONE GO.

Answer 2

Your timing may be wrong. You probably buy when the market is in the overbought zone meaning close to the highs of the stock. You should time it in such a way that you buy in the oversold zone meaning the lows of the stock. Checkout this strategy it might work out for you. In India the markets are high though the interest rates are moving up and investors will be switching funds from bonds to stocks. So it has both mixed signals, so the market might be sluggish in this area and you should be careful buying now, though the Nuclear deal might be good prospect again which might push the stocks a little bit higher. Any way be varie about investing when the index is touching highs and stock is hitting highs.

Answer 3

Buy a prescreened stock that someone is recommending.

Then do a ton of homework on it to confirm it is for you.

Finally, check the technical analysis before you buy the stock.

Now, before you put a 2nd question on what does TA mean. Let me tell you one of the answers. Check three moving averages. If they are all curling upward, then buy the stock. If they are curling downward with the stock price below the moving average, then do not buy it.

Now, go back and look at the stocks you have bought and I bet you a $1 that you have bought it when it was curling down. I further bet another $1 that you bought it when it was below the key moving average called 50day (if US stocks) and 18 day if Indian stocks.

Now, you may ask, why 18 day and 50 day. But, then it would be too many questions under a single question :-))

KKP

Answer 4

My first guess is that you are buying stocks after they have been hyped in the media or on Cramer's Mad Money. You might want to try to buy some stocks that have gone down a lot first. Here is a portfolio of stocks that are all pretty cheap already and might have bottomed out:

http://www.top10traders.com/ViewPortfolio.aspx?userID=92

This is from http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck.

Answer 5

No body can time the market. Everyone says buy low and sell at high prices ; if you are investing you should also consider the following :

Target Price to sell

And when the scrip reaches the target price do not hestitate to exit. Also note that when the share price goes down just have patience it will bounce back sooner than later. This applies to blue chip companies only and not the 'dud' stocks.

Answer 6

If you are getting some kind of tips based on that if you are making your decision that source could be wrong.

Always before investing try to understand the comapny ur self just see the earning of the company if its growing or not compare atleast for 3-5 years u dont need 2 have financial background for it.Even see the latest news related to it that could be of help it is just a task of a single day.

And invest for long term as an investor rather than acting speculator

Answer 7

never buy stocks at start of year.. many western company prices go down until feb/march and start lifting up again,

best thing to do is buy a blue chip stock 2 months before new years day if you're in for a quick 10% - 20% return and then sell in first week of january

Answer 8

Now is not a good time to invest in stocks. Instead of stocks, you should try prosper.com. But only invest in loans with a credit rating of C or better and a DIT of less than 20%. I have had tremendous success with Prosper. Good Luck!

Check out this article from the NY Times.
http://www.nytimes.com/2006/02/13/technology/13ecom.html?ex=1297486800&en=a0ac72b7453152ab&ei=5090

Answer 9

You are probably buying a stock that has peaked, or maybe the stock is in a trading range (channel). Buy stocks that are trending up with huge volumes.

Answer 10

I suggest you to sell short the stocks you pick and also share your picks with the rest of us.

We all could use a few millions.

Answer 11

To time ur entry use technical chart
with buy sell signal

for more eg clik my name & visit my blog