What price to Buy?

Pound foolish

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How is this for a strategy?

Check the 20 day, 50 day and 100 average prices of the stock you are interested in.

When the price is falling, (and there is no apparent good reason for this!) buy in at the 100 day average price PROVIDED that the 20 and 50 day average prices are higher.

It should stand to reason, in normal conditions that the price will return to higher levels and the risk is reduced.

Thats my theory anyway.

Then you should consider selling when the price is above the 20 day average after it levels off.

Simples!
 
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