STOCK MARKET RULES

CONTINUED....................
STOCK MOVES: SIDEWAYS
Again, ask questions and search for answers. Why isn’t the stock price
moving? If other similar stocks and the market are doing well, there is a
reason for a lack of movement in a given stock. Has there been bad news
recently that has created a lack of investor interest, or is the stock currently
a gem waiting to be discovered?
Although rare, undiscovered gems can experience dramatic price
surges with even a small amount of publicity. Some investors follow a
strategy of seeking out these gems, but often they end up with well-run
companies that the market doesn’t like. Usually they are basically good
companies with limited growth potential. Major investors search for companies
with virtually unlimited growth potential.
STOCK MOVES: UPWARD
Why a stock price is moving upward is most important to investors who
don’t currently own it but would like to be in on the action. Normally,
when there is a sudden surge in either the stock market or an individual
stock, the news appears quickly to trumpet the event.
WHEN TO BUY
Some believe that any time is a good time to buy stock, because over the
long term, the stock will grow and prosper. Essentially that’s correct,
although there can obviously be better times than others to buy stock.
Usually the best time to buy stock in general is when a downtrend turns
up and solidlAy crosses the trend line. If this is the beginning of a new
uptrend and not just a secondary trend, the timing should be good.
TO BE CONTINUED...................