The concept of “now” is quite relative.
There are as many “nows” as moments in each one’s life.
It is not the same for someone in China than one in Europe, or even in one month time in any of those cases.
We can say that to buy stocks “now” the best is not to be in a hurry and study well what we want.
It is also important the point of view we use to buy stocks. It is not the same someone who is thinking of doing day trading that someone who is willing to invest in the long run.
It is actually in this last issue where we should look to find when it is best to buy or not.
What stocks should we buy now if we are doing day trading?
If you have read this web for a while you should understand that doing day trading is not something that I personally advice, although if I had to do day trading I would try to trade the mist liquid stocks in the market.
In fact, I would try to look for stocks, not only liquid, but also quite volatile. Stocks that offer us more ticks.
A stock or asset that moves just a few ticks a day is not very advisable.
These kinds of stocks are very easy to find since we just need to know what the most popular companies of the moment are. Companies like Apple, Facebook, Inditex or anything similar.
On the other hand I do not think it is a good idea to do day trading using penny stocks, since the problems of liquidity can be very serious there. Although it is true that there are no stocks that move like penny stocks.
In this sense, penny stocks trading is very popular in the United States, with people like Tym Sykes promoting the trading of these kind of assets as the best way of succeeding in the markets, although I have my doubts about it.
What stocks to buy now for the medium term?
When we want to do medium term trading the best stocks are those that have a strong trend, preferably bullish, that is what I recommend to trade in stocks most of the time.
We simply check what stocks are the ones rising the most in the previous months. Those stocks will also, probably, beating maximum prices continuously.
Un good and simple method – not for being simple it has to be good – is buying stocks when the markets fall a bit, trying to get some “discounts”.
The key factor here is to let profits run.
As usual, we should keep in mind that we should use stop orders, diversification and almost no leverage.
What stocks to buy for long term investing?
Here we should make two different approaches: one for speculating and the second about investing, although both methods can mix easily.
The classic vision in the world of stocks investing is that of “Buy and Hold”, which in fact is the best thing for most people to do. This method consists in buying stocks for the long term no matter what happen in the markets. The data tells us that in the long run, stocks will outperform any other assets, whether it is bonds, housing or commodities.
Of course we do not consider countries like Cuba since every investment there would go to zero.
The other point of view is that of speculation, whatever what that means.
The method is simple:
We will try to buy the stocks when they offer us a big discount with which we could trade very aggressively.
This actually reminds me of Rothschild and his phrase: “buy when there is blood in the streets”.
That strategy would be a contrarian and trying to bet in the long run against the current mood of the market.
In other words: buying in moments of distress or desperation
Selling in moments of euphoria.
There is also another way, which is buying the hottest stocks and expects them to behave the better in the future.
Here we should find some criteria for when to buy and get out. In this sense it is very interesting the opinion of Randy Mckay.
Buy stocks now
As we can see, the things depend from the point of view with which they are seen.
Buying stocks now is quite difficult and all will depend on our point of view and what we have in mind with them for the future.
Do we want to do day trading or long term investing?
In general, we can conclude that the best stocks in the short term are those that are strong, and for the long term it is better investing in the group of stocks we think can perform the better.
Trying speculation for the medium term is something very complicated and not advisable to many people.
It is also very difficult to beat the market by buying and selling 4 stocks several times a day. There are not many who can do that and survive for long in the long run.
Most of the fund managers fail to beat the market in the long run.
We should be able to have an idea of how difficult to beat the market in the long run is.