If you’ve read our Short and Sweet Tips Column (HERE) you know we’re a fan of how limit orders work.
Example: You like a stock currently trading at 78 but you don’t want to pay that much for it.
So, you pick a price UNDER the market and you wait.
Sometimes you get filled and sometimes you don’t.
The point being you’re not chasing a stock up. And you get to buy it at a price YOU are comfortable with.
Case in point.
We like copper mining stocks and in particular Southern Copper Corp. (SCCO).
How Limit Orders Work
And on April 14th, (SCCO) was trading at 81.5.
We put an order in at 15% UNDER the market, Good until Cancelled.
Low and behold we got filled on May 22nd at $69.25.
And at $69.25 it’s paying a healthy 5.77% dividend.
(It is currently $71.20)
So, you might be wondering “What happens if it keeps on going down?”
And there is no assurance it will go back up.
But the point is we bought it at a price WE ARE COMFORTABLE WITH.
And we were able to do it as a result of the overall markets getting whacked.
Commodities on the Rise
Remember…copper, along with most other commodities, is in the early stages of a major Bull Market.
And as supply chain issues gets worse, the demand will increase and eventually causing most commodities* to rise.
(*Note: Copper is a key to industrial activity)
Another point to consider is how important it is to have cash on hand to take advantage of opportunities created by man-made fear in the markets.
But in order to have cash on hand you need to take profits when the opportunity presents itself.
Because one of the biggest mistakes most investors make is watching all their profits disappear in a bad market and wishing they’d sold before the decline.
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Think of this…
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Learn how to prosper AND thrive in Turbulent Times (HERE).
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They’ll thank YOU later.
We’re Not Just About Finance.
But we use finance to give you hope.
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