Yahoo! Finance
10-10-2006, 12:00 PM
Yahoo Finance Investing Strategies
Investor's Business Daily
Men's Clothier Yielded Several Buy Points
Monday October 9, 7:00 pm ET
Trang Ho
A common myth about investing is that you can't time the market. In fact, timing is the key to boosting the odds of buying a winner.
If you buy at the correct buy point as a stock is surging out of a sound base, it will greatly increase your chance at success and reduce the chances of suffering a loss.
The ideal buy point is the price at which the stock overcomes the final layer of resistance and is able to break free to higher ground. You should buy within 5% of this price to avoid buying a stock that's too far extended.
Finding the buy point requires analyzing the intricacies of the given base. In cup-with-handle and saucer-with-handle bases, the buy point lies 10 cents above the high of the handle.
In cup-without-handle and flat bases, the buy point is 10 cents above the left-side high of the base. In double-bottom bases, the buy point lies 10 cents above the middle peak of the base's "W" shape.
Jos. A. Bank Clothiers (NASDAQ:JOSB - News) formed a five-month cup-with-handle base from November 2002 to April 2003 (point 1). It broke out past its 25.61 buy point on April 2, 2003. The buy point in this base was 10 cents above the high of the handle, 25.51.
Volume swelled 53% above average on the breakout (point 2).
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/ibd/061009/corner.html?.v=1)
Investor's Business Daily
Men's Clothier Yielded Several Buy Points
Monday October 9, 7:00 pm ET
Trang Ho
A common myth about investing is that you can't time the market. In fact, timing is the key to boosting the odds of buying a winner.
If you buy at the correct buy point as a stock is surging out of a sound base, it will greatly increase your chance at success and reduce the chances of suffering a loss.
The ideal buy point is the price at which the stock overcomes the final layer of resistance and is able to break free to higher ground. You should buy within 5% of this price to avoid buying a stock that's too far extended.
Finding the buy point requires analyzing the intricacies of the given base. In cup-with-handle and saucer-with-handle bases, the buy point lies 10 cents above the high of the handle.
In cup-without-handle and flat bases, the buy point is 10 cents above the left-side high of the base. In double-bottom bases, the buy point lies 10 cents above the middle peak of the base's "W" shape.
Jos. A. Bank Clothiers (NASDAQ:JOSB - News) formed a five-month cup-with-handle base from November 2002 to April 2003 (point 1). It broke out past its 25.61 buy point on April 2, 2003. The buy point in this base was 10 cents above the high of the handle, 25.51.
Volume swelled 53% above average on the breakout (point 2).
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/ibd/061009/corner.html?.v=1)