Q: Example on the 4th early morning indicated a big down day for the Market. As I have done in the past, I try to buy a couple on sale but when it opens up, within a short period of time, stocks are down 5% to 10%. I usually say I will buy the ones that are down the most. These are usually stocks in my account. They start going up and then they come down and go up and down. I end up getting a 10% stock at 5% less and after an hour or so, the stock is down 10% again. How should I purchase in this type of a mad scramble in the early morning?
Your expertise is greatly appreciated.
Your expertise is greatly appreciated.
5i Research Answer:
If stocks are moving due to news or earnings, we tend to prefer to give a stock a few days to settle, to avoid what you highlight. In times of volatility, there is some randomness and stocks can have a wide range in a single day. We prefer to let things settle, take time to assess what is happening and then make a decision once volatility has calmed down.