| If anyone ever comes up with the perfect
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| | whatever rises, tends to continue rising
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| time to buy and sell stocks, that person
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| | past where you think it should stop (its
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| will own the world. Right now,
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| | called "everyone jumping on the
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| timing-based stock trading is based on
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| | bandwagon"). When a stock hits a point
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| premises only slighly better than magic.
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| | where you are sure that it is
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| There are, however, some good rules of
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| | significantly overvalued, sell.Buying
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| thumb that you can follow which will help
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| | stocks cheap takes the opposite approach.
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| you find the best times to sell your
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| | Only buy stocks that are cheap but which
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| stocks high, and when to cut them loose
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| | you think are undervalued and likely to
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| when they start to drop.The very most
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| | significantly increase in price in the
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| important thing in investing, no matter
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| | future. Stocks can only be purchased
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| what your goals, is to know the true
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| | cheap by recognizing two facts. First,
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| worth of the company you're invested
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| | over the long term, the market is
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| with, and to keep track of that worth.
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| | rational, and stock prices will reflect a
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| You should only buy a stock when it falls
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| | company's value. But second, in the
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| below the company's true value, and then
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| | short-term, stock prices may undervalue
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| sell it when it seems overinflated
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| | or overvalue a stock. Finding stocks when
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| compared to that value.To find those
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| | they are undervalued is the key. But
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| times to buy, look for situations where a
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| | remember, most of the time stocks are
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| company's stock price is artificially low
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| | selling for close to their real-value.
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| compared to its value. But the best time
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| | So, most of the time, stocks are trading
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| to sell is when you think a stock is
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| | close to what they're worth. This gives
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| overpriced and will not quickly grow into
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| | you reason to be skeptical of stocks with
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| its overvalued price. Watch your stocks
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| | low P/E ratios. But sometimes, low P/E
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| as they rise and compare the market value
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| | ratios when combined with strong growth
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| to what you think the real value is. One
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| | and market share gain, can indicate a
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| of the rules of the stock market is that
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| | buying opportunity.
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