You want an exercise in futility? Try buying a stock based solely on how its stock price swings. Stitch Fix (NASDAQ: SFIX) exemplifies this futile exercise perfectly. After all, some investors just look for stocks that are down. These investors may want to buy Stitch Fix considering it's almost 60% below 52-week highs.
However, other investors avoid stocks that have already appreciated significantly. These investors, therefore, probably don't want to buy Stitch Fix -- they feel like they've missed the boat. Because even though it's down sharply from highs, it's still up almost 200% over the past year.
Therefore, if you've anchored to the highest price per share for Stitch Fix, then now looks like an opportunistic buy. But if you've anchored to the lowest price, then now seems too late to buy Stitch Fix. For this reason, I'd encourage you to give up the futility of market timing and instead buy great businesses for the long haul.
Source Fool.com