The best way to buy and sell stocks is to understand their fundamentals, not just their price, says Peter W. Durbin, president of the Chicago Board Options Exchange.
“There are no magic bullets,” Durbina says.
Durbin says he prefers a “buy now” approach.
If you want to buy a stock right away, he recommends that you wait until the price is trending up or dropping, and then start buying.
You’ll want to be able to pay off your debt in a timely fashion, he says.
“There’s no reason to buy right now and then sell the same day,” he says, adding that you’ll want some cash on hand so you can buy when you’re ready.
Durbina cautions that the best time to start buying is during a stock’s bear market, when investors can easily see the market’s downward trend.
That means when it’s more profitable to buy at a higher price.
Durgin says he would recommend investing in stocks when they’re at or near their highest price in the past three months, which he says is typically around July.
A longer-term strategy that will work for most investors, he adds, is to look at the price of the company’s stock over a long period of time.
That way, you’ll be able compare the price with the price the company was trading for in the same time frame.
In addition to his position on investing, Durbins main focus is helping to improve financial literacy.
That includes helping consumers make informed financial decisions, helping them avoid making large purchases or spending too much, and improving their understanding of financial products and services.
He also advocates for people who are new to investing, including retirees and those who have less than a high school education.DURBIN has been active in the financial services industry since 1987, when he joined the New York Stock Exchange’s board.
He has since worked as a senior advisor and adviser on many Wall Street firms and financial advisory firms.
He also has extensive experience as an entrepreneur, having founded a retail financial services company and later created a hedge fund for clients.
In 2015, DURBINS was named one of the top 50 best hedge fund managers in the world by Bloomberg Intelligence.
In 2018, he was inducted into the Financial Services Industry Hall of Fame.
He is also a member of the Financial Markets Association’s Board of Directors, a non-profit organization which focuses on financial services, financial markets, and financial services technology.