This article is part of the series

The Chartman

Volatility Key to Picking Stock Plays

The ChartmanFOXBusiness

I thought I’d change things around a bit, and show some stocks that I’m always looking to add to my portfolio, and when exactly I start buying.

But first, the market, and this week we finally saw the breakout we’ve been waiting for.  And – whew! – it was to the upside.  The weak volume on breakout day didn’t thrill me, so I’m hoping the upside holds.  For now, though, it’s tough to be a bear.

Continue Reading Below

First up on my “favorites” list is Netflix (NASDAQ:NFLX).  Not a day goes by where I don’t watch something on it (currently, “Orange is the new Black”), so I’m on the lookout for good entry points.

The key, though, is to look at a stock’s volatility and buy on a dip that is appropriate for the stock. NFLX is a wild one, and the stock regularly dives 25% or more before rebounding.  Look to get in on that next dip.

Verizon (NYSE:VZ) is another favorite and I’m sure most of you use it like I do. This stock doesn’t move as much as NFLX, so a 7% pullback is the right drop to look for.

Back next week and we’ll see if the breakout held.

Continue Reading Below

What do you think?

Click the button below to comment on this article.