Buy Low Sell High in the Stock Market - Good Strategy to Make Money in Trades?

[Garry Greene]

You have probably heard from your parents when you were younger that
if you ever decide to invest in the stock market, you should always
buy low, sell high. That is the basic strategy that most of you have
already heard of. Is it a good strategy to make money in trades? It is
a basic stock market strategy, but not in every situation.
Most brokers would tell you when to buy a stock, but they do not tell
you when to sell. Buying is the simple step, but knowing when to sell
is very difficult. A lot of times, the brokers would tell you to hold
even when the stock is plummeting. They will say, "Don't worry because
everything will be okay."
Wal-Mart, Microsoft, and Google are great examples of the perfect buy
low, sell high strategy. If you bought their stocks when they first
came out, and sold them when they were at their all-time high, you
would be very wealthy. Most beginners would believe that they should
wait for stocks to get to their all-time low, and buy them because
they believe they would go back up to where they were before. That is
when most beginners lose all their money in trades, and never go back
to investing ever again.
For example, if a company goes from $200 down to $5, there is
something terribly wrong, and you should avoid investing in this
company at all costs. Also, if a broker suggests that you should
purchase the stock at $5 because it will "skyrocket" in the future,
you better turn around and run!

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