Partner With Us NRI

Open Free Demat Account Online with ICICIDIRECT

Should you follow the BAAP (Buy at Any Price) strategy?


Investing in the stock markets can be highly rewarding if you make the right choices and time the market well. You can increase your wealth by multiple times by investing in the right stocks with appropriate strategies.

However, you also need to be aware of its risks. You can even lose a part of your capital if you don’t invest diligently. In hindsight, you must invest sensibly and carefully conduct a risk-reward analysis before proceeding.

Strategies for stock market investing

To generate profits from the stock markets, you need to buy and sell stocks to gain the advantage of market fluctuations. What you can do is either buy certain stocks at lower prices and sell them at higher prices later, known as a long position. Alternatively, you can first sell them at higher prices and then buy them when their prices fall, known as a short position.

As an investor, you can follow different strategies for stock market investing, depending upon the prevailing market conditions and your risk appetite. Today we are discussing one, not so common strategy, known as BAAP (Buy At Any Price)

Also Read: Top Investment Strategies for 2022

What is the BAAP strategy?

Buy at any price or BAAP strategy refers to identifying stocks with high growth potential and buying them at any price. The idea behind such a strategy is that the prices of certain high-value stocks are only expected to grow in the future and quality never comes cheap. So, many investors think that buying them even without considering the current market conditions and their current market prices can be a good idea.

The fundamentals of the BAAP strategy stem from the fear of missing out from the rally if you don’t buy at the current high price. (generally known as FOMO). The believer of this strategy believes that the prices of these stocks will not fall even if the overall market may see a southward trend.

Should you follow the BAAP strategy?

Following the BAAP strategy can be very beneficial during bullish markets. The Indian stock markets have seen a bullish trend since April 2020 and have given more than expected returns to investors. You can buy the stocks at any price and expect positive returns during such conditions.

For example, stocks like Tata Motors, Hindalco, and SBI have shown good growth in the past year, rising by around 50%, 80%, and 30%, respectively. An investor entering these stocks at any point in the last year would have made good profits.

However, choosing your stocks becomes very crucial here. Not every share performs equally well, even during bullish market conditions. Some stocks can perform very well in a short period to show an upward trend but can quickly degrade. In such situations, using the BAAP strategy can easily backfire, and you could incur significant losses.

What should you do?

As mentioned, it’s very crucial to identify the right stocks before using the BAAP strategy to buy them. You should also keep in mind current economic conditions and future projections.

Market analysts usually recommend the BAAP strategy only for some good stocks that are expected to grow at a fast rate. However, even a quality stock may end up delivering sub-par returns if you buy it at an exorbitant valuation. Most of the time, it has been seen that any stock that’s overvalued can’t be traded in the market at a high value for the long term. Therefore, as an investor, you should keep patience and stick to the fundamentals.

So, it’s better to combine growth and value investing and follow the Growth At a Reasonable Price (GARP) strategy rather than the BAAP strategy.



BAAP strategy can fetch you good returns during bullish markets. It also eliminates the need to time the market. However, identifying the right stocks is crucial for generating profits from this strategy. Quick trend reversals can even result in substantial losses. You can use the BAAP strategy to invest partially in quality stocks for the long term, if you have high risk appetite.

If you want to take a safer route, you can opt for the GARP strategy rather than the BAAP strategy.

Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.

Most Popular

  • 13 May 2022
  • ICICI Securities

The Five-Point Financial Planning Checklist For Your Family

Whether you just got married or planning to have a baby or have dependents, you should have financial plans for every stage in your life to ensure a secured future for your family members. Here are five things you can do financially for your family.   

  • 12 May 2022
  • ICICI Securities

What is a Zero Coupon Bond?

You get fixed returns in the form of interest until maturity when you invest in a bond. Zero-coupon bonds work a little differently. In this article, find out what zero-coupon bonds are, their advantages and whether you should invest in them. 

  • 12 May 2022
  • ICICI Securities

What are Cross Currency Pairs?

The forex market is the largest financial market globally. Currency trading is a lucrative and booming business. While most currencies trading happens in relation to the US Dollar, some don’t. That forms the basis of cross currency pairs. Here’s what you need to know about it. 

  • 12 May 2022
  • ICICI Securities

Investing principles from Benjamin Graham: The Father of Value Investing

Benjamin Graham was a British born economist, professor, and investor who taught at Columbia University. He was also a mentor to some of the most famous investors of the 20th century, including Irving Khan, John Templeton, & Warren Buffett. Buffett called him "the second most influential figure in his life, only after my father". 

  • 12 May 2022
  • ICICI Securities

How to Invest in Nifty 50?

The Nifty 50 is the benchmark index of the National Stock Exchange. It represents the 50 largest companies listed in India. Investing in the Nifty 50 can be a good idea for those looking to make index-linked returns. Here’s how you can invest in the index. 

  • 12 May 2022
  • ICICI Securities

Investment philosophy of Cathie Wood: The most powerful woman on Wall Street

Catherine Duddy Wood, also called Cathie Wood, is an investor who primarily invests in disruptive technologies and is the founder, chief executive officer, and chief investment officer of ARK Investment Management, LLC, an investment management firm mostly active in the United States.

  • 11 May 2022
  • ICICI Securities

How to Use Technology to Improve Your Finances

Technology has made life simpler for everyone. In the realm of personal finance, technology has streamlined many processes—from budgeting to automating your payments. On National Technology Day, let’s look at how technology has transformed our finances. 

  • 11 May 2022
  • ICICI Securities

How to Invest in your Every Goal with Mutual Funds?

Each of us is unique. We have different needs and goals in life. Some of us can ride along swinging markets, while some may need a relatively conservative investment tool. 

  • 11 May 2022
  • ICICI Securities

Four Reasons Why Entrepreneurs should Invest in Equity Mutual Funds

Equity mutual funds provide growth opportunities not just for individual investors but also for entrepreneurs and corporates. They make excellent investments for anyone looking for wealth creation. This article will give you four reasons why businesspeople should consider investing in equity mutual funds.