'I'm Waiting To Catch Somebody Else's Falling Knife': Why Josh Brown Placed Limit Orders To Buy These 4 Stocks

Although the markets are nearing correction territory, Ritholtz Wealth Management's Josh Brown still hopes to buy a handful of stocks below current levels. During bear markets, he likes to place limit orders to buy stocks at specific levels, even if those levels are well below where the stocks are trading. 

"It's just a phenomenal way to capitalize on the indiscriminate selling that ends up happening, usually toward the end of these things," Brown said Tuesday on CNBC's "Fast Money Halftime Report."

He currently has limit orders to buy Meta Platforms Inc FB, Lululemon Athletica Inc LULU, Moderna Inc MRNA and Netflix Inc NFLX. Brown noted that he feels he can buy them "much lower" than where they are currently trading.

See Also: Read How JPMorgan Views Meta, Apple, Amazon, Netflix

Brown started placing the buy orders at price levels that "seemed ridiculous at the time," but now those stocks are coming into range, he said.

"I'm waiting to catch somebody else's falling knife," Brown said. "I've done it historically for a long time and I feel that it's a great approach."

Brown noted he doesn't expect to get all of the stocks he is bidding for, but he is sticking to his strategy. He told CNBC the limit order approach is much better than buying into the market when the S&P 500 is up 2% on a given day. 

FB, LULU, MRNA, NFLX Price Action: At publication time Tuesday afternoon, Meta was down 2% at $200.04, Lululemon was down 1.22% at $304.89, Moderna was down 0.88% at $144.56 and Netflix was down 3.45% at $377.80.

Photo: PublicDomainPictures from Pixabay.