Tutorial: Choosing a Stock Entry Point

In stock investing this is one of the basic skills that you need to master, choosing a stock entry point!

choosing a stock entry point
choosing a stock entry point

You can learn this skill from many stock gurus but learning it on yourself is your best option. Choosing a stock entry point is not difficult as you might think.

For this tutorial let us take a look at CEBU PACIFIC, CEB stock. It is very important to choose the stock or stocks you want to buy before taking action.

For beginners, focus only on 1 stock. Don’t get distracted with other stocks and how they are performing.

So, here we go:

Tutorial: Choosing a Stock Entry Point

  • Check the stock’s 52-week Low and High prices. For our example, here’ s the details we need for our entry point:
CEB

As of May 8, 2017 03:20 PM

Last Trade Price:
108.20
Open:
108.40
Previous Close:

May 05, 2017
108.50
Change:
down 0.30
High:
108.90
P/E Ratio:
(Adjusted)
14.94
%Change:
down 0.28%
Value:
21,453,381.00
Low:
106.10
52 week High:
125.50
Volume:
199,750
Avg. Price:
107.40
52 week Low:
85.50

These details are available at pse.com.ph

Take note directly on the 52week High: 125.50 and 52week Low:85.50.

Base on these Ceiling and Bottom prices we will choose on our next entry point. And most especially we want to buy when its price comes nearest to the 52week Low if possible.

 

  • Set a Buy Below Price. The Buy Below Price is like our maximum price limit when buying CEB. Also it means, when the share prices goes higher than our Buy Below price, we will not Buy anymore. Be disciplined. How to set a Buy Below Price? In COL Financial, the Buy Below Price of CEB is 90. And in Truly Rich Club the Buy Below of CEB is 98.20.

 

  • Check the Current Price. This is our last step in choosing a stock entry point. Make sure you have a clear picture of how CEB is performing yesterday, today and it’s possibilities on the following days. As of this writing, the current price of CEB is 106.60. Which automatically makes that price over and beyond the Buy Below Price, right? Meaning, you cannot buy shares of CEB at this time.

So, what was really the entry point price of CEB? It should be below the Buy Below Price and Below the 52-week High!

I was able to buy CEB at 93.15 pesos per share last February 27, 2017. 

In conclusion:

Choosing a stock entry point means you don’t have an exact price as an entry point! But rather, you have guidelines to follow. As mentioned above, Check the stock’s 52-week Low and High prices and Set a Buy Below Price. With these two simple guidelines I assure you that you will have a better GAIN on your portfolio.

And as of this writing, my CEB has 14.24% GAIN! and growing.

As always, keep on learning and earning soon! Happy Investing!

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