Replies to post #110 on cybertrader

[zailor]

Bottom Fishing: The Art Of Buying Low and Selling High

With a new generation of gunslingers driving stock prices higher and higher, how can we find low-priced bargains? By bottom fishing, of course. It’s the art of buying low and selling high, and a great way to get rich. Why isn’t everybody doing it?

Buying low and selling high is not as easy as it sounds. No one knows for sure which stocks are "low," and which are "high." A stock that seems "low" may go lower. One that seems "high" may go higher. How can we tell which is likely to do what?

Clearly, history can be our guide. A stock whose price has fallen from a peak is "low" relative to that peak. A peak may reflect the highest price a stock has ever attained, or it may reflect an intermediate high over the last 52 or 13 weeks. Whatever the case may be, investors perceive that stocks are "low" when their prices are down from former levels, and "high" when prices have risen from lower levels.
Vil nu helere have dem inden de ryger til vejrs
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