I have always been an advocate of buying stocks the minute they cross to all time highs but I have never taken my own advice. Q: Why? A:Fear. Today I decided to take my own advice and buy a stock at an all time high seeing I have waited for a correction and it does not seem to be coming. Good luck to me!!!
then you will have to be right more than 1 in three times...otherwise most times you will just break even and be disappointed with all the effort put in.Yes, i agree you must lock in profits as the trade moves in your direction but the final exit must capture the bulk of the move giving you a 3:1 profit/risk ratio.
LOL.....Tell me you're joking(about all time highs)! I wouldn't dare do it on a stock like Naspers, that would scare me. Got in at R14.95 as it made new highs and was initial looking at selling at R16.50.... It looks like we're safe for now To be honest I like the company and thinking of getting into it long termish.....
let tell you a very sad story: I bought KIO at an all time high of 390 in October 2010, got scared and sold very soon, my stop loss never triggered. Look at it today; all I had to do was hold and adjust my stop loss I would have made a killing with the dividends as well. Worse still I went short NPN at R200 in 2010 because it looked too high; was stopped out quicky when the stop triggered. I keep a list of all stocks that have hit all time highs, 76 of them; only 4 of those 76 are out of the money today.