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How do you decide what your entry point is in a stock?

Posted on 11/8/21 at 2:56 pm
Posted by Weagle25
THE Football State.
Member since Oct 2011
46182 posts
Posted on 11/8/21 at 2:56 pm
So lately I’ve gotten into calculating the intrinsic value of the stocks I’m buying. Obviously that’s only one part of researching a stock I’m interested in but it’s just made me curious about the entry point.

If I come up with a value of a stock then theoretically I should be happy getting it for anything under that but sometimes get greedy. For example, right now I might have 4% in cash waiting for the right moment on a couple stocks that I’ve watched and feel like a dip will come based on moving averages and other technical factors.

Just curious how other people do it. Do you calculate a value at all? Are you happy with any price point under that value? If you don’t calculate, how do you decide your entry point?
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
70886 posts
Posted on 11/8/21 at 3:03 pm to
Depends on your goals.

If you're looking for dividends, buy when the dividend yield is the percentage you want.

If you're looking to flip on a few months, watch the fundamentals and try to figure out the price point where it's temporarily and artificially low.

If you want long term capital gains, just make sure it's a viable company. Anytime is a good time to buy in.
Posted by LSUcam7
FL
Member since Sep 2016
7901 posts
Posted on 11/8/21 at 3:11 pm to
quote:

calculating the intrinsic value of the stocks




Assets to the moon!
Posted by slackster
Houston
Member since Mar 2009
84612 posts
Posted on 11/8/21 at 3:56 pm to
quote:

Do you calculate a value at all?


First time on the money talk?
Posted by oklahogjr
Gold Membership
Member since Jan 2010
36748 posts
Posted on 11/8/21 at 5:08 pm to
quote:

Do you calculate a value at all?

I try to come up with some kind of valuation of what I think it's worth but it varies by industry and business how I get there. Biotechs are probably the most consistent and easiest to value.

quote:

Are you happy with any price point under that value?


Mines typically a range based on scenarios. I try to buy at lower half of range but I'm ok with paying a fair price for a good company always. So anyone in range is fair game to slap the buy button.
Posted by Weagle25
THE Football State.
Member since Oct 2011
46182 posts
Posted on 11/8/21 at 5:21 pm to
quote:

First time on the money talk?

figured the AT crowd wouldn’t respond
Posted by Weagle25
THE Football State.
Member since Oct 2011
46182 posts
Posted on 11/8/21 at 5:27 pm to
quote:

Depends on your goals.

If you're looking for dividends, buy when the dividend yield is the percentage you want.

If you're looking to flip on a few months, watch the fundamentals and try to figure out the price point where it's temporarily and artificially low.

If you want long term capital gains, just make sure it's a viable company. Anytime is a good time to buy in.

I guess this part of the portfolio I’m talking about the goal is looking at a 5-10yr range for the stock. Finding ones I think are undervalued based on their current trends. Pricing it for a 15% return and hoping they blow my projections out of the water.

The thinking being that if my estimates are conservative then I should at least get 15% return and hope a couple blow it out of the water. Maybe I’m just thinking too much about the entry point and should just trust the calc.

I guess hybrid between holding forever and short term investing.
This post was edited on 11/8/21 at 5:31 pm
Posted by Chad504boy
4 posts
Member since Feb 2005
166136 posts
Posted on 11/8/21 at 5:34 pm to
I look for a sag and hopes it turns into a climb
Posted by slackster
Houston
Member since Mar 2009
84612 posts
Posted on 11/8/21 at 6:22 pm to
quote:

Biotechs are probably the most consistent and easiest to value.


Not sure if serious?

They’re some of the most notoriously difficult things to value.
Posted by My2ndFavCivilNgineer
Member since Jun 2013
586 posts
Posted on 11/8/21 at 6:47 pm to
quote:

So lately I’ve gotten into calculating the intrinsic value of the stocks I’m buying. Obviously that’s only one part of researching a stock I’m interested in but it’s just made me curious about the entry point


valueinvestorsclub, IMO a must to learn about valuation, is free just sign up with email. You will learn a so much from reading the equity ideas.
Posted by deltaland
Member since Mar 2011
90502 posts
Posted on 11/8/21 at 8:05 pm to
Just take 2 grand, buy 200 dollars each of a bunch of different meme coins


Wait to get lucky.
Posted by TchoupitoulasTiger
NOLA
Member since May 2011
1222 posts
Posted on 11/9/21 at 12:19 am to
quote:

Just take 2 grand, buy 200 dollars each of a bunch of different meme coins


In the market we’re in today, this is sound advice.

To the OP
quote:

How do you decide what your entry point is in a stock?
You gotta feel it out. Best advice I heard was “Well, if you’re comfortable buying a stock at that price, then sell a put at that price. You can’t time the market, sometimes you have to let it decide for you.”


Posted by oklahogjr
Gold Membership
Member since Jan 2010
36748 posts
Posted on 11/9/21 at 7:39 am to
quote:

Not sure if serious?

They’re some of the most notoriously difficult things to value.



So in some ways yes and in some ways no. But I'd much rather take a swag at understanding the value of a single to medium sized pipeline of drugs than dig through the tangled mess of GE or other large conclomerates legal entities and contracts to calc their value
Posted by el Gaucho
He/They
Member since Dec 2010
52915 posts
Posted on 11/9/21 at 7:43 am to
I could teach you how to pick stocks bruh but it’s not a knowing it’s a feeling
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