Thursday, February 28, 2008

Stock Tips For The Smart Investor

The smart investor is one that buys low and sells high! This is everyone's goal with investing, right? Well the problem is most people buy a stock after its biggest gain! That's right, after its already made its biggest return. Hindsight is always 20/20. It's easy to read about or see on tv, the performance of an allstar stock that has dominated the market with its return. This causes people to feel if they get in now they can some how share in the return. This hype causes people to buy a stock because of the its previous performance. Then what happens in most cases is the stock decreases in value and the frustrated investor sells the stock before he/she loses anymore money. They ultimately buy high and sell low! Chances are you may have experienced this, I know I have! So, don't buy into the hype you see and read about. Invest in educating yourself before investing your hard earned money.

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