Part 2 When to Buy Stock; How to Manage Risk

Last week we offered a tutorial that demonstrated in real time how a smart investor can effectively manage the risk of buying stock at the wrong time.

You realize that there are, in fact,  right and wrong times to put your hard earned cash to work in the market.  This assumes a desire to maintain your portfolio value at comfortably close levels to all time high values, at all times.

Some of you may not care if your portfolios lose massive percentages of their value over select decades.  In that case, this is not for you.

Watch:

PFE Added

 

 

PFE looks appealing to me on the daily and weekly time frames as you can see below.

NOTE:  The market is correcting, so I just started a small 1/4 sized position.  If it breaks below 29.36 I will consider the overall status of the correction and decide if it is worth closing the position.

I like the dividend as well.

 

PFE Daily 2-3-14

PFE Weekly 2-3-14