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Stock Investing 101: Buy Low, Sell High

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While most speculators hate bear markets, experienced investors love them to see what deal they can grab before the markets plunge back up. Once you’ve taken some time to study, it’s time to select a company to buy from. But before you start, you must have a plan of action. I’ve lost money by not sticking to my plan, but I’ve also saved hundreds of dollars but cutting my losses. Buying low and selling high is crucial in the stock market arena.

If you research well, sometimes your $20 to $40 dollar stocks may be the right buy- depending on how many shares you purchase. Though there are penny stocks (stocks typically under the price of $5 dollars), these low-budget stocks have high volatility and they are not recommended for the beginner investor. Investing in penny stocks require a lot of education and finding the precise time to invest. And if you don’t k ow what your doing, DON’T INVEST!

Investing In Penny Stocks Require A Lot Of Education And Finding The Precise Time To Invest.

Some investors choose to buy close to the 52-week low price, while others choose to wait after the company’s earnings call or look for resistance levels in the stock’s chart readings.

Related: What To Look For In The Next Earnings Report

Though it’s not guaranteed, at times investors will choose to sell their stocks based on what they heard on the earnings call. Good or bad, prices fluctuate and the lower, the better.

If you study Warren Buffetn you will know that when you buy you should intend to hold the security forever. But if you do sell, sell when the stock is at its highest (close or above 52-week range). There are plenty of ways to evaluate a stock, but why be in a rush to sell the stock at a median price when you can wait until it reaches a higher price? This takes patience, but patience certainly pays off in the end.

All-in-all, when you set boundaries for your investment strategy, you will know what to in in a bull or bear market. Don’t panic, think….

Closing Disclaimer

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market. Every investor is different in her/his own way.

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