How do you automatically buy stock when it drops a certain price?
The past few days stocks have gone up a lot and I believe some are overpriced. I think a few of the ones I want will go down in price and that when I want to buy it but I won't be at a computer for most of monday and tuesday. I was wondering if there is some way that I can set a price that I believe it will go down to and then automatically purchase it?|||You can buy or sell stocks at any price you want. If you use a broker, just tell him the price you want to buy or sell the price at, he will take care of it. If you want to buy a stock eg; Ford (F) at $4.75, and it is presently trading at $5.00. you put in a limit buy or sell order at the price you want. List the number of shares, and when it hits your price it automatically executes. When I buy a stock, I immediately put in my sell order, knowing what price I think the stock will reach. Here is some info that might help you:
Do you have a strategy? What rate of return are you expecting? (not hoping) Do you have at least 5 active web sites to do your strategy check. I liked the strategy of short term trading, vs day trading. Short term trading I would execute 1 trade every 5-8 trading days. I set up to make a profit of 8-15% every trade. I developed my strategy over years of trading then found out that Wade Cooke used a similar but refined strategy. He invests in rolling stocks. Finding a stock that rolls 8-12% over a short period of time, alway repeating the highs and lows. I would average 40 -55% a year in good trading years. Stocks are volatile, but in a bear market right now, and that is good and bad for this strategy. I suggest buying the book on Amazon.com "Wallstreet Money Machine" by Wade Cooke. The work comes in finding the stocks that roll. YOu can buy a hard cover for less than $1.00 used.
|||It's called a "limit order".
You place your order on line now, with instructions "Buy when the price is under $8.75"
That order will stay in the queue, waiting for the price to drop.
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