Best strategy to buy stock
Posted: Thu Oct 02, 2014 3:29 pm
If you want to buy another company do you buy like 5% a month until you own 75% or some other time frame? Is it a good idea to spread purchases over a long period of time?
When you purchase stock, it increases the stock price. So if you make several stock purchases in a row, you'll pay an increased cost. Generally, if you wait, the stock price will start to fall back to what it was originally. So if this is the case, it's cheaper to spread your stock purchases out. However, you also risk the stock price raising due to good performance.
I would pay attention to the economy. During recession periods, stock prices for companies that have non-necessary goods will generally fall as fewer people are purchasing non-necessary items.