buy facebook likes
Published On: Thu, Nov 7th, 2019

Why Mastercard Shows Buying Growth Stocks On A Gap-Up Is Sound Investing Strategy

IC-MA-081116

The conventional wisdom sometimes advises caution when boldness is required. For example, when top growth stocks gap up out of a base, it’s natural to think it’s too late to buy.




X



{“@context”:”https://schema.org”,”@type”:”VideoObject”,”name”:”Technical Analysis: How Breakaway Earnings Gaps Can Provide Compelling Opportunities”,”description”:”We’re in the thick of earnings season, so it’s important for investors to keep an eye on stocks that could potentially break out of bases after issuing their quarterly reports. ServiceNow is an enterprise software stock that’s setting up ahead of earnings.”,”thumbnailUrl”:”https://www.investors.com/wp-content/uploads/2019/04/j0bh6GjE-640×360.jpg”,”contentUrl”:”https://content.jwplatform.com/manifests/j0bh6GjE.m3u8″,”uploadDate”:”2019-04-23T10:52:14+0000″,”duration”:”PT114.88S”,”author”:”ALISSA CORAM”,”publisher”:{“@type”:”Organization”,”name”:”Investor’s Business Daily”,”logo”:{“@type”:”ImageObject”,”url”:”https://www.investors.com/wp-content/uploads/2018/09/ibd-logo.png”},”url”:”https://www.investors.com”},”keywords”:””}

You’ll hear remarks like this: “You should’ve bought it last week. After today’s big gain, it’s way too late to buy.”

That kind of thinking paralyzes many investors.

If IBD was about momentum investing, then the too-late argument would be valid. The investor who buys a junky or mediocre stock simply because of a big price gain is assuming more risk than is prudent.

Categories