Topic: How To Invest

What is Pat’s commentary for the week of April 5, 2016

Article Excerpt

The comments on our website, TSINetwork.ca, give us a window on what our readers are thinking, and on how they interact with each other. Recently, one reader wondered, “…what is a good entry point when purchasing a stock or an ETF? I always pay too much then the stock drops like Home Capital Group dropped from the $50 range to $30 range as soon as I bought it. Setting a limit price is difficult— does one choose a 50-day moving average, or?” Soon after, another reader addressed her question. He suggested that she look further into moving averages, and shared some of his views on how to profit from them. Many investors make buy and sell decisions with the help of moving averages and other forms of technical analysis. I don’t know if this has any consistent impact on their long-term returns—for better or worse. It may be more reliable…