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New High Stock Picks
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Thu Nov 20 2008

Thu Nov 20 2008

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New High Stock Picks


I've tried buying before on the "break out" but haven't had too much success.


The only one that could be considered a breakout is AMWD and BLKB is a recent IPO. The others have been in an uptrend for a while. These stocks will probably be a little volatile in their ascent. I think the best performer will be BLKB.


I think chasing stocks up is a bit counter-intuitive to me.


What do you mean by "chasing stocks up"?


Your strategy is to buy stocks at the highest point they ever reach? Seems risky.


That's what winning stocks do. Move higher. Breakouts to new ground on higher volume is best, but you can catch a stock mid run that is building on sales and earnings growth. The key is there is no historical resistance, where prior selling started. However, no stock goes straight up. It's okay to try and let new highs pull back a bit before buying in. With most stocks, a 8-10 % pullback is normal. With volatile growth stocks it could pull back 20-30%. This is where risk management (setting stops) comes in. Go to my site and look at NVR. It went from 45 to 520 (last traded at 512). It made lots of new highs.

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