Investment Strategies for Beginners: 3 Stocks to Buy During the Pullback
I like buying quality items on sale, so why wouldn’t you buy great stocks when they pullback? Just pay attention to the chart and make sure the price is not breaking down on the long haul. You want something that is in an uptrend but having a pullback. This trading strategy is simple and can work for short term swing trades or just long-term investing. When the overall stock market pulls back some people freak out and panic and sell stocks out of fear, others start looking for buying opportunities, or swing trading opportunities. That is one huge problem for a lot of beginners investing is they have all their cash plus maxed out on margin in the market. When a pullback happens, they lose more money than they can afford and cash out their positions and are so emotional they make rash decisions. If you look at big funds they keep cash for that reason, not because cash is making them money sitting there, but because that is the best time to put your money to work is during pullbacks. No matter if you are swing trading as a beginner or investing as a beginner always keep It simple, to many people over complicate trading stocks or investing in the market all together. Let us look at an example of 3 stocks to buy during this pullback.
1. Nucor Corp $NUE Nucor is the largest US based steel company. This type of investment is like investing in railroads, they will always be needed. I always see a need for steel, especially with failing infrastructure, buildings in the U.S. recently collapsing in Florida leaving too many dead. A lot of buildings and bridges and other infrastructure in the U.S. needs to be rebuilt. Over the last month or so, Nucor's stock price has fell about 23% into oversold territory and the moving averages set a buy signal for a reversal. On top of that they go Ex-dividend on 9/29/2021 which is great timing and pay $.40 a share. Keep your dividends reinvested into the stock for maximum compound interest. I never buy for a dividend, but I love assets that pay me. Nucor has an average price target of $135 which is about a 35% increase from its current price. This is a great company to add to your portfolio or a wonderful time to add to your position. The market is a little rough right now and things can be bumpy, but this is a great long-term investment that may not pay the highest dividend but does pay you just to park some cash here. I normally stay away from charts that have a gap down until they have a couple swing cycles but about every index right now has a gap in it is not just a Nucor chart issue. If you bought Nucor on every pullback throughout the years you would be doing well right now.
There are a lot of buying opportunities right now and this list could have been a lot longer. When you are investing as a beginner or experienced buying pullbacks will pay off. No matter your strategy for trading stocks or investing keep it simple, its either buying pullbacks or breakouts and I stopped buying breakouts based on the amount of the head fakes. I keep my trading and investing simple pay attention to moving averages and I am working on an alert system to subscribe to. I prefer to stick to ETFs and if I trade, I trade leveraged ETFs. You can find my book of the many learning lessons I made over the last 20 years trading stocks from FDA run up’s, news, following other people etc. HERE The goal is for others to learn from my mistakes and what I found to work well without making the same mistakes.
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