Starting up new with PCA, how does one choose a stock or two from the current portfolio?

Stock Talk

Jeffrey J

Jeffrey J

Hi Linda, I am new to PCA, and am looking to purchase a stock or two from the current portfolio, for starters. Of the ones which have a (green) "Buy" rating, would it make sense to choose one or two which, have experienced the greatest percentage decline since the stock was entered into the portfolio? I presume those would represent the ones with the greatest current upside potential, given that all of the stocks in the portfolio are deemed to be of high quality. Those one or two stocks would then be viewed as having the greatest "bang for the buck" (so to speak). Please let me know if my logic makes sense, or not. Thank you.

Jeffrey Lagrew

Jeffrey Lagrew

I have the same question

Linda McDonough

Linda McDonough

Hello Jeffrey,
You are correct that each stock in the portfolio with a green buy button is trading below my suggested price limit and represents what I believe, a good entry price. We do have a lot of names in the portfolio but I keep up to date with them. In fact, I did a major deep dive portfolio review last weekend and sold out three names where my opinion has changed due to new events. We are amidst the busiest part of earnings season, and one of the more volatile seasons that I’ve seen, so you might want to prepare yourself for additional volatility until the season winds down.

I suggest subscribers think about averaging into positions as it is impossible to choose the bottom tick in any stock. (If you figure out how to do that, please do share!). This means deciding ahead of time how many total shares you want to own and then spreading them out over several weeks.

I will answer your other question about sizing in that stock talk board so that others can find the answer more easily.
Best,
Linda

Add New Comments

You must be logged in to post to Stock Talk