buying the highs

[TheBigShort]

It seems like a reasonable strategy to buy new all time highs on good volume on smaller companies with a stop below the previous day. For example I initiated a play on TUSK yesterday. Does anyone have experience with this/similar strategy? I have a trailing stop initiated and will hold until the stop is hit.

Theoretical question as well. Whose lunch am I eating by buying these all time highs? Thanks for your opinions and comments.

 

[TheBigShort]

Here is the screener I would use

 

[traider]

Your strat sounds so easy to test, just go and test it instead of asking for random opinions

 

[maxinger]

I think only the financial experts, news reporters, coaches talk about buying the highs.
When price reaches the highs, you will hears tons of news in internet, in newspapers ..
That's why there are programs which identify which stocks reach 1 year high, 10 years high, ALL time super high and those things.


For we traders, buying the highs simply doesn't make sense because you have simply missed the boat by many many donkey months /years.
We buy when the up momentum is starting to build up, and as market moves in our favor, we unload some of our lots.

So there are two ways to trade / invest. Choose which ever way you think will work for you.

 

[ET180]

For we traders, buying the highs simply doesn't make sense because you have simply missed the boat by many many donkey months /years.

We buy when the up momentum is starting to build up, and as market moves in our favor, we unload some of our lots.

It's at the new high for a reason. The underlying reason, a reflection of value, is more important than the price. Yes, the price might be high, but the question for any asset is what are you getting for the price? Buying a new high with strong volume shows conviction, both on the part of the new buyers as well as those short who decide to fold rather than hold.

 

[tomorton]

When buying a new high there can often be difficulties identifying a suitable stop-loss price using TA. Buying a recovery from a pull-back points obviously to the swing low as a level of support.

 

[Handle123]

It depends on the reason of making new highs, if it was cause the "street" was wrong and it made a new high like a bullet, then I fade that, but if the bar's ranges were sort of evenly averaged on a milder angle and right after trend change or having a "thrust" bar then retracement that happens over several bars, then buying a high I would be a buyer.

 

[mushinseeker]

I used to think buying the high was an inferior strategy vs. buying a low. Psychologically, I like getting things at a "discount". Bad move.. at least for the tickers I follow. I did a research on TLT and suprisingly, buying the high with a 5% profit/loss stop performed much better than buy low.TLT is a very liquid stock too.

 

[Xela]

When buying a new high there can often be difficulties identifying a suitable stop-loss price using TA. Buying a recovery from a pull-back points obviously to the swing low as a level of support.

This.

It seems like a reasonable strategy to buy new all time highs on good volume on smaller companies with a stop below the previous day.

It sounds perfectly reasonable to me, but I strongly suspect you can do better, overall, with your stop-loss placements than just "below the previous day".

Whose lunch am I eating

Not mine (unless you're eating my kwareżimal).

 

[fordewind]

Not mine (unless you're eating my kwareżimal).

recipe please, dont be shy