There are various ways one can approach investing in the stock market - some example:
1. Buy and Hold
2. Buy Low and Sell High
3. Buy High and Sell Higher
High-risk Traders usually follow the (3) style but there are folks who like to go with slow (2 - Buy Low and Sell High) investing. Now here's one stock that seems to be in Buy Low and Sell High category -
The stock is AT&T
Why AT&T looks buy right now?
1. AT&T stock is standing at Horizontal support line of 36 - level from where it has bounced in last 1.5 year. It looks like a solid base for rally.
2. AT&T stock at current market price is trading at Dividend yield of 5.3%. In a low interest rate environment, that's a lot.
In the market, there is nothing guaranteed. At this point of time, one can make an assumption that AT&T will hold 36 for the above reasons but remember there is a reason why stock has come down to 36 in the first place and those negative pressures can derail the stock and take it down below 36 too. Hence one should always have a stop loss -4% below 36 levels to avoid getting stuck with losing position for long
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers