Veeva Systems Inc.
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Not what to buy but when to buy !

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Once you have identified the stock that you want to buy (assuming you had done your due diligence), then the next question is when do you enter your long position?

A good method is using the TA analysis and for me, using supports, resistance, trend lines , price actions, etc have proven to work thus far. Other TA traders/investors may adopt different strategies like moving averages, MACD, etc. There are many tools that one can used.

From the chart, we can see a round about turn of direction for the stock prices. Here, we see some support at 256.24. The last candle is still in the red, meaning selling pressure is still intact. So, no hurry to get in now. Let's see if the price will rebound at 256.24 as it has proven several times.

The one thing that many retail investors are afraid to go long a stock is because they see that the prices have run quite a bit and are afraid to catch a falling knife. So, they waited and waited......and thus missed out the opportunity to make money!!

Who does not want to catch the stock at rock bottom price at ride it up all the way to the peak? Such stock picking can only be random luck or few in your portfolio. A wiser and more logical approach is to understand the trend that the stock is in, study its fundamentals and understand its chart patterns.

I will wait for this stock to reach the support and buy a small position. If it does breakdown from this level and go lower, I will then wait for the next level of support. This can be at 240, 220 or even lower. These are possibilities but lower probability in my opinion.

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Praise Lord
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Chart PatternsTrend Analysis

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