What Does a Double Down Buy Alert Mean? | The Motley Fool (2024)

To succeed at investing is not as difficult as it may seem.In fact, the common "buy low, sell high" wisdom might actually be preventing you from reaping the full potential of the best companies in your portfolio.

The best investors generally adhere to a few basic principles to outperform the market and generate life-changing returns. At The Motley Fool, co-founders Tom and David Gardner have been successful both by identifying companies with sustainable competitive advantages and by buying and holding stocks for the long term -- which eliminates the need to show consistently positive results on a quarterly basis.

What Does a Double Down Buy Alert Mean? | The Motley Fool (1)

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One of the Gardners' key investing philosophies is that investors should add to their best-performing holdings rather than trim them. This may sound counterintuitive since conventional investing strategy teaches investors to rebalance their portfolios by trimming positions in winners and adding exposure to underperforming sectors.

Successful businesses tend to succeed for a reason. Therefore, stock market winners are more likely to continue to win. When Motley Fool investing services such as Motley FoolStock AdvisorandMotley Fool Rule Breakersre-recommend buying a stock, it's called a "double down buy alert."

What does a double down buy alert indicate?

The double down buy alert indicates that a Motley Fool investing service is recommending a stock for the second or even third time. This is a sign that the analysts are so bullish about the stock's future that they suggest buying it again, even at a higher price, essentially encouraging investors to double their holdings of the stock. The double-down signal often indicates that the stock is one of The Motley Fool's top stock picks, but the alert is distinct from others like The Motley Fool's ultimate buy alerts, which are issued when both Tom and David Gardner recommend the same stock.

The Motley Fool has recommended doubling down on only a few stocks, so the alert is one of the strongest confidence signals investors can receive. Among past recipients of double down buy alerts are Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), andTesla (NASDAQ:TSLA) -- all companies with stock prices that have skyrocketed over their histories.

Related investing topics

Double-down stock trading strategy

There are a number of benefits to the double-down trading strategy. First, the best stock to buy is often one you already own. While it's important to diversify your portfolioby owning at least 15-20 stocks, the stocks you already own tend to be the ones that you understand the best. Therefore, you can more easily capitalize on opportunities that arise when the stock is unusually cheap or when it loses value due to short-term reasons like simply missing earnings estimates.

The other reason why the double-down stock-buying strategy works is because winners tend to keep winning. While it may be tempting to add to your losers with the hope that they'll gain substantial value, you're better off selling your losers and reallocating that money to your winners. Past performance isn't a perfect indicator of future growth, but it's one of the most reliable signals available. Companies that outperform generally do so because they are better managed, can create and retain competitive advantages, and are implementing disruptive strategies.

How to take action on The Motley Fool double-down stock yourself

When The Motley Fool issues a double down buy alert, our analysts are encouraging investors to buy more of the stock, assuming they purchased it the first time it was recommended. While you don't have to double your ownership of the stock, historically it's proven profitable to add to your portfolio additional shares of the recommended company. A double down buy alert doesn't necessarily mean that the stock is expected to double in price, although there's a good chance it will, especially since Stock Advisor tends to issue double down alerts for only the most promising growth stocks in the market.

The Motley Fool encourages investors to take control of their own portfolios, so you'll have to make the decision for yourself whether to buy the doubly recommended stock and also decide how much of the stock to buy. However, the track record of Stock Advisoris clear. The investment advisory service has outperformed the S&P 500 (SNPINDEX: ^GSPC) by a factor of nearly five since its founding in 2002. In other words, history shows that when The Motley Fool gives a double down buy alert, it's probably a good idea to follow that advice.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Netflix, and Tesla. The Motley Fool has a disclosure policy.

What Does a Double Down Buy Alert Mean? | The Motley Fool (2024)

FAQs

What Does a Double Down Buy Alert Mean? | The Motley Fool? ›

What does a double down buy alert indicate? The double down buy alert indicates that a Motley Fool investing service is recommending a stock for the second or even third time.

Is Double Down a good strategy? ›

While SPY increases the average gain when doubling down, the opposite happens in trend-following assets: the average gain/loss worsens, thus indicating that a double-down trading strategy is a bad idea in many assets.

How accurate are Motley Fool stock picks? ›

The average return of all 512 Motley Fool Stock Advisor recommendations since the launch of this service in 2002 is 489% vs the S&P500's 129%. That means they are beating the market by 3.8X since inception. They have a win rate of 65% profitable picks.

What are Motley Fool rule breakers? ›

The Motley Fool is an entrepreneur-led organization that has a long track record of finding diamonds in the rough. The Motley Fool Foundation Rule Breakers Program finds, funds, and amplifies social entrepreneurs who are advancing bold solutions that can help more Americans move from striving to thriving.

What number is best to double down? ›

More Blackjack Double Down Tips and Tricks

Remember, your double down bet must always match your initial bet amount. For most people, particularly those who are newer to blackjack, it's almost always a good idea to double down when you are showing an 11.

Does doubling down work? ›

Never double down when you're showing anything higher than an 11, as the chances of going bust are too high to risk. It's better to simply hit or stick on a lower total, and then hope that the dealer goes bust. Basically, if you're ever unsure whether to double down, stick to the safe option and keep your bet as it is.

What is Motley Fool's All in Buy Alert stock? ›

We regularly see similar ads from the Motley Fool about “all in” buy alerts, sometimes also called “double down” or “five star” buys, and they're generally just the type of steady teaser pitch that they can send out all year, over and over with no updates, to recruit subscribers for their flagship Motley Fool Stock ...

When should you double down? ›

If your first two cards are 2 and 8, 2 and 9, 3 and 7, 3 and 8, 4 and 6, 4 and 7, 5 and 5, or 5 and 6, and the dealer's card is lower than yours, probability is in your favour. Double down. You can't go bust, but the dealer risks going over 21 because they have to hit until they reach 17.

What is the doubling down strategy? ›

The "double down" strategy requires that you throw good money after bad in hopes that the stock will perform well. Fortunately, there is a fourth strategy that can help you "repair" your stock by reducing your break-even point without taking any additional risk.

What is the best time of the day to buy stocks? ›

Best time of the day to buy stocks. The first few hours of the trading day tend to see the most trading activity. Traders have had a chance to process the news from the early morning or the evening before, like announcements from federal regulators or companies' earnings reports.

What is the most accurate stock prediction site? ›

Zacks has built a reputation as a reliable source of stock data for investors looking for a stock picking edge, Zacks' free stock screener has almost everything investors need to make well-timed and informed stock picks. That's why Zacks is our choice as the best free option for a stock screener.

What stocks will boom in 2023? ›

10 Best Growth Stocks Of June 2023
  • Bank of America's Best Growth Stocks of 2023.
  • Amazon (AMZN)
  • Constellation Energy (CEG)
  • Chipotle Mexican Grill (CMG)
  • Alphabet (GOOG, GOOGL)
  • Eli Lilly (LLY)
  • Match (MTCH)
  • Progressive (PGR)
Jun 1, 2023

Who is the richest investor in the world? ›

Not just the richest but also the most popular investor in the world Warren Buffett started his investment journey well before he reached the age of 10.

How can I make money with 1000 dollars? ›

Here are nine top ways to invest $1,000 and the key things to know about them.
  1. Buy an S&P 500 index fund. ...
  2. Buy partial shares in 5 stocks. ...
  3. Put it in an IRA. ...
  4. Get a match in your 401(k) ...
  5. Have a robo-advisor invest for you. ...
  6. Pay down your credit card or other loan. ...
  7. Go super safe with a high-yield savings account.
Feb 1, 2023

Should you double down 11 against 10? ›

When you double down, you risk losing double your original bet, but with 11 vs. 10, you win double your bet more often, giving you a higher average profit.

Do you double every 11? ›

If the dealer is showing a lower card than a 10, it is good strategy to double down. If the casino rules dictate the dealer must hit soft 17, you should always double down on 11 no matter what the dealers up card.

How many times can I double down? ›

Doubling down is making a bet equal to your initial wager after being dealt your first 2 cards. You only get dealt 1 more card and cannot hit. Double down if your cards total 9, 10, or 11 without an ace. You can also double down if your cards total 16, 17, or 18 when you have an ace.

What is the risk of doubling down? ›

Risks involved

Its main risk is that it attempts to move against the overall trend. In the example above, there was a also a possibility that the stock would not turn around. Instead, it would have continued with the bearish trend and lead to substantial losses to the trader.

Should you hit on 16? ›

If you hit the 16, you will win 25.23 percent of the time, bust out 69.31 percent of the time and push 5.46 percent of the time for a net loss of 44.08 percent of the time. By standing on the “hard 16” you will win 29.01 percent of the time and lose 70.99 percent of the time for a loss of 41.98 percent of the time.

Do you double down on 11 against an ace? ›

When the playing rules specify that the live blackjack dealer must hit soft 17 (h17), you should double down on 11 against all dealer upcards (including against an Ace). (This is the same strategy as in a single-deck game.)

What are Motley Fool's 10 best stocks to buy? ›

Here are 10 stocks that could be excellent additions to your portfolio for years to come.
  • Block.
  • Realty Income.
  • MercadoLibre.
  • Shopify.
  • Intuitive Surgical.
  • Disney.
  • Berkshire Hathaway.
  • Amazon.
Jun 8, 2023

What are Motley Fool's top 5 growth stocks? ›

Great growth stocks
Company3-Year Sales Growth CAGRIndustry
Tesla (NASDAQ:TSLA)40%Automotive
Shopify (NYSE:SHOP)52%E-commerce
Block (NYSE:SQ)56%Digital payments
Etsy (NASDAQ:ETSY)48%E-commerce
6 more rows

What is The Motley Fool's Flagship investing service stock Advisor? ›

The Motley Fool's flagship service, Stock Advisor is an online resource for stock research and recommendations for newbies and experienced investors alike. Our analysts scour the world for companies we believe will offer long-term potential for investors.

What casino game has the best odds for a payout? ›

What casino game has the best odds? Video poker can provide the best odds in a casino, depending on the version of the paytable. However, blackjack is generally regarded as having the best casino odds when using basic strategy. This can help lower the house edge to around 0.50%.

What is the difference between double up and double down? ›

Although “double up” appeared much earlier in an entirely different sense, it also showed up in the 1940s as a gambling usage. In blackjack, Oxford says, to “double down” means “to double the bet after one has seen the initial cards, with the requirement that one and only one additional card be drawn.”

Why is it called doubling down? ›

Where does double down come from? In its original context of the card game blackjack, double down describes a strategy wherein a player who is confident in their hand chooses to double their bid. The phrase is found in a book on card-playing by noted magician John Scarne in 1949.

What does doubling down mean? ›

: to become more tenacious, zealous, or resolute in a position or undertaking.

What is a martingale in finance? ›

Martingale system refers to an investment system which holds that the investments dollar value continues to increase despite it experiencing successive losses. This system was introduced in the 18th century by a French mathematician by the name Paul Pierre Levy.

What is the 10am rule for stocks? ›

In either case, you should know by 10 a.m. ET whether the opening trend will hold or reverse itself. One clue is the strength of the trend line. If the line is steep—think 45 degrees or greater—then the trend is likely to continue.

What is the 10 am rule? ›

Following the 1910 fire season, the U.S. Forest Service adopted a policy of total fire suppression. By 1935, the “10 a.m. rule” was in place, stating that all wildland fires were to be completely out by 10 o'clock on the morning following the initial report.

Where should I invest $1000 right now? ›

How to invest $1,000 right now — wherever you are on your financial journey
  • Build an emergency fund. An emergency fund is crucial to your financial health. ...
  • Pay down debt. ...
  • Put it in a retirement plan. ...
  • Open a certificate of deposit (CD) ...
  • Invest in money market funds. ...
  • Buy treasury bills. ...
  • Invest in stocks. ...
  • Use a robo-advisor.
May 8, 2023

What is the best algorithm to predict stocks? ›

Long short-term memory (LSTM): Many experts currently consider LSTM as the most promising algorithm for stock prediction.

How do you predict which stocks will go up? ›

We want to know if, from the current price levels, a stock will go up or down. The best indicator of this is stock's fair price. When fair price of a stock is below its current price, the stock has good possibility to go up in times to come.

What is the best tool to predict stock market? ›

Price to Earnings ratio is one of the traditional methods to analyse the company performance and predict the prices of the stock of the company.

What stocks will triple in 2023? ›

7 Hot Growth Stocks Poised to Triple in 2023
APLTApplied Therapeutics$1.55
LYTSLSI Industries$12.47
ONDSOndas Holdings$1.07
LIFEaTyre Pharma$2.08
OLPXOlaplex Holdings$3.76
2 more rows
May 5, 2023

Which stock will double in 3 years? ›

DD's Stock Doubling in 3 years
S.No.Name3Yrs return %
1.Titan Company45.49
2.Adani Enterp.141.52
3.SRF47.43
4.Trent36.36
23 more rows

Which stock will grow the most in 10 years? ›

5 Best Growth Stocks for the Next 10 Years
Growth stockYear-to-date return (as of May 10 close)
Apple Inc. (ticker: AAPL)33.8%
DexCom Inc. (DXCM)8.2%
Fortinet Inc. (FTNT)37.1%
Tesla Inc. (TSLA)36.8%
1 more row
May 11, 2023

What stocks do millionaires buy? ›

Here are nine of the current stocks the wealthiest people in the world are buying.
  • Alphabet (GOOG)
  • Amazon (AMZN)
  • Colgate-Palmolive (CL)
  • Constellation Energy (CEG)
  • Dollar General (DG)
  • Meta Platforms (META)
  • Microsoft (MSFT)
  • PayPal Holdings (PYPL)
Nov 16, 2022

Who is the really rich stock guy? ›

Warren Edward Buffett (/ˈbʌfɪt/ BUF-it; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway.

Who is the number 1 investor in America? ›

Warren Buffett is often considered the world's best investor of modern times. Buffett started investing at a young age, and was influenced by Benjamin Graham's value investing philosophy.

What is the best stock to make money fast? ›

In addition to Amgen, Inc. (NASDAQ:AMGN), other Fast Money stocks that are widely held by elite hedge funds include Tesla, Inc. (NASDAQ:TSLA), UnitedHealth Group Inc. (NYSE:UNH), and Microsoft Corporation (NASDAQ:MSFT).

How can I legally flip money? ›

11 Real ways to flip money
  • Real estate flipping. ...
  • Flip websites or domain names. ...
  • Resell goods online. ...
  • Bank account churning. ...
  • Traditional investing. ...
  • Non-traditional and alternative investments. ...
  • Flip money by fixing physical items. ...
  • Invest in land.

How can I make $200 dollars a day? ›

8 Ways To Make $200 in Just a Day
  1. Freelancing. Many skills can make you money as a freelancer. ...
  2. Drive for Uber or Lyft. ...
  3. Deliver Food. ...
  4. Complete Tasks on TaskRabbit. ...
  5. Pet Sitting or Dog Walking. ...
  6. Sell Items Online. ...
  7. Participate in Paid Focus Groups or Surveys. ...
  8. Rent Your Space.
May 5, 2023

Does double down app pay real money? ›

Under the terms of the settlement, class members can receive a cash payment based on the amount they spent on in-game purchases for DoubleDown casino games, the number of claims filed and the net settlement fund after deductions. Class members who spent higher amounts on in-app purchases will receive larger payments.

Why do people double down on bad decisions? ›

As a result, we often double down on our mistakes. The most common reason why is, perhaps, ego. When we develop strong emotional ties to our beliefs, our sense of self and identity become intertwined with them — leading us to protect our self-concept by standing firm in our arguments, despite acknowledging their flaws.

How much does double down pay out? ›

Blackjack Double Down Payout

If you double down and win the hand, you win 1:1 on your money. In our example, you ended up betting $10 on the hand, getting $20 back, including your stake.

What is the double down rule? ›

What Does Double Down Mean in Blackjack? This is another excellent strategy question. On your original two cards, you can double your bet before the dealer gives you another card. You place another bet equal to the first. Then, the dealer will give you only one card The dealer settles all bets at the end of the hand.

Is there a lawsuit with DoubleDown Casino? ›

June 2 (Reuters) - A U.S. judge on Thursday approved a $415 million class-action settlement resolving claims that online gaming companies DoubleDown Interactive LLC and International Game Technology PLC (IGT. N) violated Washington state gambling laws and consumer protection provisions.

Is there a class action lawsuit against DoubleDown Casino? ›

In August 2022, DoubleDown Interactive (DDI) and International Game Technology (IGT) agreed to a $415 million settlement. The payment aimed to resolve a class action lawsuit brought against the social gaming developers. The settlement agreement received final approval last week in a Washington federal district court.

What app actually pays you? ›

Swagbucks

Swagbucks is a recognized leader in the online survey space. The long-running app has paid out hundreds of millions of dollars to users over the years. You can earn rewards for shopping online, answering surveys, playing games, and watching videos (read: ads). Cash out for gift cards from major retailers.

Why am I poor in decision-making? ›

Poor decision makers fail to keep those base assumptions in mind when applying the tried and true. Having no strategic alignment. Bad decisions sometimes stem from a failure to connect the problem to the overall strategy. In the absence of a clear strategy that provides context, many solutions appear to make sense.

Why am I so bad at making big decisions? ›

Difficulty in making decisions can be caused by several factors, such as a fear of failure and a lack of confidence or information. Indecisiveness can also be a symptom of mental health conditions, such as attention deficit hyperactivity disorder (ADHD), depression, and post-traumatic stress disorder (PTSD).

What is a person who always makes bad decisions called? ›

A dysfunctional person doesn't have their life in order, which can manifest in any one (or many) of a variety of ways - making poor financial decisions, an inability to keep a job, or having unhealthy personal relationships are a few examples of dysfunctional behavior.

Is $20,000 a good down payment? ›

To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage. If you're a first-time home buyer, you could save a smaller down payment of $10,000–20,000 (5–10%). But remember, that will drive up your monthly payment with PMI fees.

Is 7% a good down payment? ›

Average Down Payment on a House

The average down payment on a home is 12%, according to the National Association of Realtors. For first-time homebuyers, the average down payment is just 7%. Repeat buyers put down an average of 16%. If you can't put down 20%, you're in good company.

Is 10% down a good idea? ›

It is absolutely okay to put 10 percent down on a house. In fact, first-time buyers put down only 13 percent on average. Just note that with 10 percent down, you'll have a higher monthly payment than if you put 20 percent down.

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