What Metric Should Trigger a Buy?

Discussion in 'Share Investing Strategies, Theories & Education' started by izzy16, 22nd Feb, 2017.

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  1. izzy16

    izzy16 Well-Known Member

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    Keen to invest in some LIC's/ETF's but am curious what most of you look for to know when to buy. I'd prefer to buy when things have dipped a bit, but is there are more specific measurement of what to look for? E.g. 52-week high/low to assess this? Or something similar?
     
  2. Zenith Chaos

    Zenith Chaos Well-Known Member

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    I would order in something like the following priority:
    1. Macro - market crash: GFC type scenario, stock market drops over 25%
    2. Long-term (>3 years) low:
    3. Micro - market correction: Market drops 5 or 10% (e.g. Trump election)
    4. Below post-tax NTA (LIC only)
    5. 52 week low
    6. Below pre-tax NTA (LIC only)
    7. DCA strategy says buy at this time
    8. You have a lot of cash
    Not advice.
     
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  3. wombat777

    wombat777 Well-Known Member

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    I need an app that automatically sets up all the alerts for 1 to 6 against a watchlist.
     
  4. Perthguy

    Perthguy Well-Known Member

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    IG Markets does a lot of alerts. Not sure if it does all those but you can set up a free demo account

    Trading alerts

    I don't really understand the terminology on IG Markets. It seems like you can buy shares? but then trading seems to be CFDs?

    I just want to buy and hold shares/ETFs so I am not sure if it is suitable for this.

    Share trading
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    I look for a rise in the SOI as the indicator of a change.
     
  6. izzy16

    izzy16 Well-Known Member

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    What is SOI? (I'm a noob)
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    The Southern Oscillation Index.
     
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  8. wombat777

    wombat777 Well-Known Member

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    When comparing difference to 52-week lows, ETFs and LICs generally sit within a few percentage points of the indices they are tracking.
    Screen Shot 2017-02-28 at 7.31.50 AM.png

    So looking at some LICs, you can see that they all sit within 6-7% of the industrials index.

    Screen Shot 2017-02-28 at 7.32.29 AM.png

    The easy thing to do is there for set an alert an track the industrials index price.

    investing.com has an app (for iOS and Android) with some quite good tools and it's free. It also has alerts. The graphs are much more readable on a phone than the commsec app graphs.

    IMG_7726.PNG
    IMG_7727.PNG

    There are also technical analysis tools if you like to read tea leaves.

    IMG_7728.PNG

    Although they are better in the desktop (web) version. They also come with a little for-dummies section which explains the patterns.

    Screen Shot 2017-02-28 at 7.45.46 AM.png
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Linky

    And one for the chartists

    SOI
     
  10. Nodrog

    Nodrog Well-Known Member

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    Wrong Industrials index. Only contains the following:
    AXNJ is only a small subset of the "broad" Industrials Index. XJI is the correct Index if you can find it. It contains everything except mining and materials.

    As for metrics perhaps keep it simple. They're likely to do you more harm than good in the wrong hands.
     
  11. wombat777

    wombat777 Well-Known Member

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    The simple measure for me is tracking the index ( rather than setting up alerts for individual LICs ).

    The XJI index may require a subscription as it is an S&P index.

    Bear in mind, if you use the above app you will get missed calls to your phone from a Forex trading company ( 11 Complaints for (03) 9006 5600 in Australia 0390065600 ).
     
  12. turk

    turk Well-Known Member

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    You can track the XJI on the free version of IncredibleCharts - XJIA-AX
     
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  13. Nodrog

    Nodrog Well-Known Member

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    Yes. But don't tell anyone:cool:.
     
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  14. Alex McDonald

    Alex McDonald Active Member

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