The Stand-Out Price

You’re ready with your small entry quantum,…

…looking to add on to you portfolio. 

You’re always liquid,…

…owing to your small entry quantum strategy. 

Where do you enter?

This is not a difficult question.

Why is this question not difficult?

That’s because the stocks in your portfolio are fundamentally tested, and have been found to be sound by you.  

Fundamental soundness is a bombastic plus. 

Now comes the next question.

Where is margin of safety being offered to you?

Is it enough margin of safety for you?

Are more stocks offering this kind of margin of safety?

What, then, is a stand-out price?

You will enter there. 

A stand-out price hits you in the eye. 

It is unusual. 

It speaks of a large fall such that the level of the price draws your attention within milliseconds. 

When you see a stand-out price on the way down like this, you ask the next questions. 

Why is the price where it is? 

What has happened?

Whatever that has happened, is it a one-time thing?

Is the momentum of the fall subsiding, or mid-way, or what?

Ask as many questions as you may want. 

The answer you want to drive at is yes or no.

Yes as in you would like to use your small entry quantum to pick up the stock in question. 

No as in you would like to wait for more clarification. 

If you pick up, you’re done for the day, if you follow a one-entry per day strategy, that is. 

If not, you look for another stand-out price.