Hello! You should buy when the stock price hits your buy price or when the stock is undervalued. Sounds simple right but the question is how do you determine the buy price? The easiest way is to look t analyst reports which will give you a rough guide as to what range of prices is reasonable for that particular stock. However, I would highly recommend you do your own research and analysis! You can start by reading the company's annual report, recent news release for a qualitative analysis. To determine if a stock is undervalued, you can run a discounted cash flow analysis. What a DCF does, is it projects the company's future cash flow and discount it back to today, giving you the target price. If the current stock price is below this target price, you should buy.
Hello! You should buy when the stock price hits your buy price or when the stock is undervalued. Sounds simple right but the question is how do you determine the buy price? The easiest way is to look t analyst reports which will give you a rough guide as to what range of prices is reasonable for that particular stock. However, I would highly recommend you do your own research and analysis! You can start by reading the company's annual report, recent news release for a qualitative analysis. To determine if a stock is undervalued, you can run a discounted cash flow analysis. What a DCF does, is it projects the company's future cash flow and discount it back to today, giving you the target price. If the current stock price is below this target price, you should buy.