What Is The Best Purchase Price? by Thomas Bulkowski
Have you analyzed your trading setup to determine what the best price is for buying a security? Here we explore some ways to do that.
I received an email from a man asking for a single tip that could improve his trading or give him an edge. What do I tell him?
That is a difficult question to answer because it is so ambiguous. I did not know anything about the man or his trading style, but I wanted to help. So I thought about the question and found an idea worth exploring: What is the best price range for buying a stock?
In other words, should you buy penny stocks (whatever your definition of them is, such as stocks priced below $1 or $5 a share, or those sold over the counter), high-cost stocks, or those priced in between?
From decades ago, I remember reading that the charter for mutual funds prevented them from buying stocks priced below $5 a share...