Hi
@BuffettWarren,
I have different trading approaches depending on the stock that I'm looking at, as an example I do like taking a punt on small - micro cap mining companies where I'm more looking at the track record of management and the potential of the project they are trying to develop. But for large established companies then I look for companies such as Codan that have all the aspects that I mentioned in my prior post and then I wait to see if an entry pops up that is way below market value so my investment has nice buffer zone / safety margin and I'll look to hold for the long term, unless something fundamentally changes with the company.
This is basically copying the model of all renown value investors....Have you found a great company? Is it currently under valued? Is there potential to buy it a a further 10 - 20% discount to give yourself a margin of safety?
Current price would be good buying if we didn't have economic headwinds predicted for next year. So when looking at the chart I'm looking for the next obvious big level where the price could fall to if broader market rolls over. Currently CDA is flirting with the COVID low of $3.90, if we break down from this price then the charts show that CDA spent approx 1yr in a trading range between $2.80 to $3.40. That is a very long consolidation period which will mean a load of support. I think an entry within this range will be possible and I'd like to be a buyer @ $3'ish or under.
However we never really know what the market will do and it's worth noting if the recession is bigger than expected then it could blow through those levels and trade down to the next range down which was also a very long consolidation period between $2 to $2.60. These prices would be sensational buying for this company, but if price does venture down this low then my guess is that the whole market will be f###ed and there will be plenty of opportunities to find great companies at cheap prices!
(20min delay)