My strategy (it's not very deep):
- I look for well-established stocks that have been suffering lately. Ideally, said stocks should have a solid history of consistent, if choppy, growth on the 5-year chart and maybe further.
- I consider whether the stock is truly undervalued. I do some research on the industry, read up on some news about the company. I have two main checks. First, I imagine the likelihood of the company falling apart within a year or a few, absent of something extremely upredictable. If that thought is laughable, I then see if there is substantially negative news with lasting repurcussions to justify a sustained drop. If I see the business sticking around, with no news of the sort I mentioned, I go to the next step.
- IMO, technical analysis is a weird self-fulfilling prophecy. Whether or not it makes sense, enough people trade off of it that it can be accurate, particularly with supports and resistances. So, I check if the stock price has consolidated or slightly rebounded from a support. If the stock has already tanked, but hasn't hit the next lowest support, I don't buy. I'll wait until it hits, and see if it stops dropping once it does.
- Finally, I will monitor the stock after buying it, with alerts if it drops below the support I initially referenced. I'll sell if the support is broken and watch the stock when it hits the next-lowest one. That's how I dodged the last LULU drop and bought back in at $300. We'll see how that pans out with earnings coming up.
Stocks I recently bought: ULTA, SBUX, HSY, SHOP, CVS, NKE, LULU.
Disclaimer: I've only been investing seriously for near two years, so we'll see if my strategy holds up in the long-run or if it's a load of bullshit. I usually hold my picks until it goes below the support, like I mentioned, or until it has gone up a few dozen percent at the least. I also make the occasional regard play, like a small bet on \bank stock that shall not be named* recovering after all the bank stuff last year. Spoiler alert, it didn't. My latest regard bet is ASTS at $7, so we'll see if that one pays off.*
How I almost doubled the S&P with stock picks in my Roth (no options)
byu/jojodoudt inwallstreetbets
Posted by jojodoudt
27 Comments
This advice is too good for wsb…this is a casino and not a place for investing
You got lucky kid. You bought whatever you did in an absolute bull market. Of course you made money! This has nothing to do with your “strategy” and everything to do with the fact that a *rising tide lifts all ships*
How do you feel about the following “discounted” stocks I’ve been looking at:
* tsla / rivn
* snow
* net
SPY has been suffering lately
What you’re describing is the Dhando Investor strategy. There’s a formula for it. I recommend you check it out/read the book.
Ban.
Thoughts on intuit after their recent drop
u/stocks u/investing
Gotta agree on the lulu pick especially with a likely earnings beat next week
Solid stuff
Me, randomly yoloing tqqq with zero research and not trading at all for 3 months:
https://preview.redd.it/iqj65hgiir3d1.jpeg?width=1080&format=pjpg&auto=webp&s=a9748f4a5cfb5429b3a3eca12f1e8546d97fc303
Bro thinks he ist Buffet after outperforming the market for one Year. We will see you next year.
RemindMe! 365 days
holdings?
You are going to lose your shirt on Shopify
Just say it already, you had inside info and you are bragging. Move along.
TL/DR: it’s luck
Whatcha think about MCD
Everyone’s a genius in a bull market
How do you feel about $ADBE?
This is the THE investment strategy. I hopped on the Amazon/google/microsoft/ facebook/regional banks train last year in January-March and doubled my portfolio easily. It’s unfortunate that I was just getting into investing and only had about 10k in it at the time. My recent buy is Pfizer, just love these prices for a dividend aristocrat that has great cash flow, product development, and the durability to survive for more than 100 years. Ps- $DG is another good one
TLDR you think the markets are wildly inefficient and you haven’t been doing this long enough to be taught that you’re wrong.
read? you sure you are on the right sub?
Throw in some talk of competitive advantage and company leadership, and you’re Warren Buffet. I never thought I’d read about value investing on WSB lol
opinion on ccl?
Congratulations you have graduated from being on wsb, off to stocks lol
He discovered the wild, new, high-rolling strategy of fundamental investing with sensible guard rails to account for technical signals and market sentiment.
Only thing I would add to this strategy is any kind of rule based risk management like a stop loss or something. Saved my neck when I sold my Agilent stock after it dropped 5%, before it fell another 15%.
This is very similar to my strategy but I have bought a lot of bonds to hold my emergency fund in. I had a 38% return last year with A, TMO, FCX,
META