How do you keep track of prices?
My goal is to increase my dividend income, and generally this occurs organically through dividend reinvestment when dividends are issued. However, increasing the number of shares I own is another way to insure my dividend income grows. But buying requires some decisions. What price is reasonable? What price is too high? What price is a “Back Up The truck” moment?
Back Up The Truck?
What does Back Up The truck mean? This expression is slang for loading up on some item, in this case, buying a large number of shares in one or more companies. When the stock of a good company is on sale, one might back up the truck and buy a substantial amount of shares.
So
Among other information I keep on my stock holdings is a list of stock prices, for each stock, that I would consider significantly lower than usual. Should they fall to such unexpectedly low prices, I will consider buying substantially more, namely I might “back up the truck.”
Metrics
Of course there are many metrics which to use when determinig which stock to buy, or sell. Many are well known, many are esoteric, many are of dubious usefulness. But.
Another piece of data I keep track of is the percent within the 52 week high and low range of a stock. For example, if a stock is selling for $10 per share, and the 52 week high was $15 and the 52 week low was $5, then $10 is at the 50% point. By calculating this value on the shares I own, I can quickly see its relative position in its 52 week range. That easily tells me how strong or weak the current price is relative to its 52 week range. And based on previous values, I can see if the price is relatively increasing or decreasong.
What metrics do you track? Let me know here.
The illustration of a busy neighborhood is by Albert Robida, who, in 1890, depicted his vision of the future in “Le vingtième siècle: la vie électrique”. Courtesy Getty Research Institute.
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