Suggestions for Buy-Low-Sell-High Stocks

Suggestions for Buy-Low-Sell-High Stocks

"Buy low, sell high" is the ultimate stock trader's mantra. It's the best way to make quick money in the stock market. However, it is easier said than done. At times, those that invest in the stock market purchase at the wrong time, and in fact find themselves buying high and then having to sell low. Don't get caught in the stock market hype, and use your resources carefully to be successful in the stock market.

Know the History

1.      When deciding whether to buy or sell a certain stock, take a moment to examine that stock's particular history. Sites like eTrade.com and ScotTrade.com can give you a recent history of a stock's activity. Watch out for stocks that have a long history of instability, where their history looks like a roller coaster. Although there is money to be made with these stocks, you have to be able to take a big risk with them and even be prepared to lose some money if they drop unexpectedly. Leave these stocks to the pros.

Watch the Market

2.      Changes in the market often come when a very public change is made to the company, or the company has been in the news. Once a newscast reports that a company has reported large earnings, many people rush to get in on the action and buy stock with them. However, this is the absolute wrong time to buy. The stock is on its way up, and you might end up paying a premium price for a stock that will drop once it's out of the limelight. Keep your ear to the market and try to pick up on rumblings before they are reported. The best time to get in on a popular stock is before anything is announced.

Steady Stocks

3.      In the stock market, slow and steady often wins the race. Look for stocks that steadily and slowly rise. These are the ones that often fly under the radar, but are still good moneymakers. Also, watch the market for stocks that were initially some of the highest, and for whatever reason dropped. This might be the best time to buy low, because if it is a reliable company who experienced a changing of the guard or a layoff, their stock prices will temporarily and quickly dip, before climbing back up to where they were previously.

Be Patient

4.      When trying to buy low and sell high in the stock market, you'll need to master the art of patience. While you may hear stories of traders making a million in one day, this is not realistic for you. Place your money in a stock of your choice, and then watch the market carefully. Set an amount for yourself that you'd be happy to get, and sell when you get to the point where you make a suitable return. Many traders have ended in ruin when they let their excitement and greed get the best of them. Be realistic and patient, and expect losses to be a truly great trader.

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