connor26-If you are a trader only, richly valued, fair valued or cheap are not factors you should consider. They do not matter. Just use the chart and internal technicals like accum distribution rating etc.
Also do not let high or low enter into the decision making process. [much with the exception given below]
High can go much higher, low can go much lower.
Generally sticking with stocks that have been in a long uptrend is better than those who have been trending down.
You do not want to be a hero and try to pick losers you think will turn out to be winners.
To a trader, forget high and low and focus on stocks that have a high reward vs. risk profile ascertained by significan't areas on the chart that give one that good reward vs risk
example.
Pull back to the 50 day moving avg for stocks that have been in an uptrend.
Breakouts to the upside in stocks that have been consolidating, putting in a base. That base can be a high base after a run, that is OK. Nice thing about buying at significant junctures is that it's easy to figure out where a stop should be. Needless to say, there should be stops on every trade.
Investors Business Daily is excellent for narrowing the field down to stocks with the right stuff and their system once learned helps one to identify just where to buy.
They also identify overall market conditions and whether they allow for ANY buying and when to sit in cash.
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