Buy when Up or Down

[ratmpower 10]

One of the basic question that often comes up is - do you buy when price reaches 52-week high or when it reaches 52-week low? The argument for buying at high is that it indicates the stock is in increasing trend, whereas the argument for buying at low is that it is cheap.

[ratmpower 10]

I have implements two automated strategies

1. One that automaticaly buys stocks that make new 52-week highs

2. Another that automatically buys stocks that make new 52-week lows

Both strategies hold stocks for one month before selling them.

 

I will update this thread with the results as they become available.

Edited January 7, 2012 by MadMarketScientist
url removed

[curtisj76 10]

I'm all in when a stock bottoms out and if it doesn't make any sense and it's still a good company. Nothing better than when a stock takes a big hit due to external factors that really don't impact it much. Made a lot of money the past couple years when a stock is really low. Last week I bought a large position in Ford that I'm gonna just sit on. I'm planning on at least 30% this year. Their sales are rising yet the stock has gone down 30+% in the past 52 wks. It's gonna be a good one this year.

 

You won't see me buy a stock at a 52 wk high.

 

Just me.

[henryduncan12 10]

I buy at low if there is some trend to go up in near future. But I do not follow 52-week high or 52-week low strategy for buying or selling.