Buy on Pullback A lot of times traders will talk about buying stock on a pullback. What exactly does this mean? We will use an example of Caterpillar (symbol CAT) shown below:                           We see that CAT is in a nice uptrend going back to last November. Buying back at the first of December would have been ideal; but as the stock continues its climb, when else would be times to buy? Buy on the pullbacks. A pullback […]

There are numerous ways that investors use to create a watchlist of companies for them to trade. There is not a right or wrong way, more of a personal preference. A bottom up approach is a method where we start with analyzing individual companies and then work our way up to looking at the groups they are part of to decide whether to add to our list. We perform a fundamental analysis on the companies that we want to consider. If the company doesn’t pass our fundamental analysis, we move […]