After evaluating the top stocks in step1 and their value in step 2, we finally arrive at step 3. We call this step as the Purchase Moment. We wait for the market to start functioning for the day, and once it starts showing the value of the stock, we pen it down across the chosen share.
The purchase moment is one of the most crucial steps as the price of the stock will decide whether to buy the stock or not. The decision of whether to buy the stock is quite tricky as it depends on the Value step.
If the stock is cheap, then there is a high probability that the stock will give a good return in the long run. However, the price is not the sole factor that you must consider while purchasing a particular stock. It depends on other factors like the company’s performance over time as well. Nonetheless, investing in a stock with lower cost is simply safe because the risks are low.
Once a few stocks are selected, we purchase stocks of a few companies at cheaper price and move on to the next step, which is observing the performance of those companies for further analysis.