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Buy High, Sell Higher


How many times have you heard the phrase, "buy low, sell high"? This is the conventional wisdom in the investment world, but research shows you shouldn't be concerned with that part about buying low. Let's walk through this one step at a time. Research shows that the best-performing stocks make new highs before they make their major leaps in price. Moreover, stocks at new highs tend to continue moving higher, while stocks making new lows tend to continue to move even lower.

This is a concept many investors find difficult to accept. They assume it's too late to buy a stock that's reached an all-time high. But the great paradox of the stock market, as Investor's Business Daily Founder William O'Neil calls it, is "What seems too high and risky to most investors is likely to continue rising. And what seems low and cheap usually goes down."

Think about it. If a stock goes from $15 to $50 it has to reach new highs at $16, $17, $18 and so on. Stocks making new lows, on the other hand, manifest inherent weaknesses.

Just by applying the laws of supply and demand you can see why new highs are important. When stocks advance, they're demonstrating growing demand as investors raise their expectations about the company. On the other hand, stocks making new lows are usually afflicted by just the opposite: sagging expectations. Yes, there's plenty of stocks in the bargain basement, but they're there because the merchandise, so to speak, isn't hot.

Some stocks may have very strong fundamentals or great stories, yet they don't go up because there's little investor interest. So while you wait for a stock to be discovered -- if it ever does -- other stocks are moving into the spotlight. The spotlight, in a way, is the new-highs list, such as the one that appears daily in IBD and is explained later.

Stocks reaching new highs tell you professional investors are moving in and pushing prices higher

2007-01-15 03:22:04 · 4 answers · asked by joshua c 1 in Business & Finance Investing

4 answers

try Microsoft, which is soon gonna roll out its retail version of Vista
and Infosys [Nasdaq listed], which recently gave out excellet nos.

2007-01-15 04:07:16 · answer #1 · answered by sushobhan 6 · 0 0

Easy......Go to the following links and enjoy the Buy High and Sell Higher concept. By the way, if you really like doing this then subscribe to IBD since they are the inventors of this scheme.

Careful now....What goes up comes down, and if you are not watching them closely, or the stock does not have a leg to stand up on it's own (with the momo players), you will be standing, holding the bag of goods.

Good luck.

KKP_Inv

2007-01-15 11:20:28 · answer #2 · answered by KKP_Investor 3 · 0 0

coins would probably be a better choice, they're easily divisible and have some numismatic value. some, like GAEs will carry a premium precisely because that. a bar is just a bar, but it would be easier to store and transport if you happen to be Mr. Moneybags. the only thing that really matters is that it is gold and is commonly recognized as such. the face value isn't important (unless you want to mess with the IRS), it's just what as assigned to it by the act that forced the mint to make them. remember, however, the value of gold, and anything else, is only whatever the price someone else will pay for it. keep that in mind. yeah, just ignore everything I said, the megapost wins

2016-05-24 06:23:42 · answer #3 · answered by Anonymous · 0 0

You are VERY right. Buy high and sell higher.

Good upside movement stocks:

SHLD, MSFT, AKAM, SIGM, SIMG, AAPL, BBI, LVLT to mention a few.

2007-01-15 04:51:58 · answer #4 · answered by Anonymous · 0 0

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