Thursday, January 31, 2013

When To Buy And Sell Stocks

One thing that I learned while getting my Degree in Finance about Stocks was to buy when the stocks are low and sell when the stocks are high.  If you see that the stocks you hold are losing value, that is the time to buy.

If you think about it, an imaginary stock (let's call it Stock A) could be doing well for a while, then you see its price per share going down.  Let's also say that the 52 week high was $50 and the low was $10. If your stock gets close to $10, buy more.  When it goes back up to where it was at it's high, you will have gained 5 times over on your stock and that is the time to sell!

Remember, stocks are always fluctuating.  They go up and they go down.  Don't worry when they get low because the majority of stocks go back up again!

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