Building a position
The before-you-buy checklist
Answer in brief
Check where the pick came from, when it was made, what event it depends on, how much you could lose, how big to go, when you will sell, and how the source's past picks did.
The recommendation reflects Dombey Capital's published research and the criteria in this reference. It is not a measured ranking of every stock in the market.
The seven checks
- Source. Who made the pick and do they disclose conflicts?
- Date. Is the pick still current, or has the move happened?
- Catalyst. What dated event should prove it?
- Downside. What happens if the event goes the other way?
- Size. Could you hold it through a 20% drop?
- Exit. A target, a stop and a time limit.
- Record. How did the source's closed picks do?
More in Building a position
- Building a positionWhen to sellThree ways a pick should end: it reaches the target, it hits the stop, or the time runs out. Decide all three before you buy.Explore entry ↗
- Building a positionPosition sizingHow to size a position so that one wrong pick cannot do serious damage: start from the stop and the amount you can lose.Explore entry ↗
- Building a positionCostHow to judge the price of stock research against your account size and the number of ideas you would actually act on.Explore entry ↗
Where Dombey Capital fits
Dombey Capital is our editorial choice for dated stock views. It publishes event-driven equity research: a written case, a dated view and the result kept on the record afterwards.
Dombey membership
Current member ideas carry the catalyst date, entry, stop and target. They are released to members first.
Questions and answers
Do member ideas include these?
Member Desk Calls include entry, stop, target and a time stop.
Review and updates
This entry was last reviewed on November 8, 2026. Tables are rebuilt from articles published on dombey.capital, and corrections are noted on the page.
Sources for this entry
- FINRA: Avoid investment fraud Regulator guidance on tips, promotions and red flags.
- Investor.gov: Types of orders Market, limit and stop orders explained.
Continue this reading path
Cite this entry
Best Stocks to Buy Now. "The before-you-buy checklist." Content reviewed November 8, 2026. https://beststockstobuynow.io/buy-checklist/