As an investor I often hear from other investors who are thinking about buying a dollar stock. "Do I buy a dollar quota?" This is a question that I get asked quite often from new and long-time traders. So I thought I would give you some insight on why you should not buy a dollar stock based upon intuition alone.
All stocks are different. If you are trying to pick a stock that is just about ready to breakout, then you should have an indicator in front of you that shows you where the support levels are. It does not matter what this indicator looks like. What is important is that you can get a better picture of where a stock is going before you ever make the trade.
If you have an indicator that is giving you a sign that the price may go up, stop buying and look for a reason why. Is the price already breaking a resistance or line? Is there a big support zone? Once you can figure out where the support is you can buy at that level and you will be much more likely to hit a profit.
There are some cases where I buy a dollar quota based upon feeling. You might feel that a particular stock has been overbought or under bought. Perhaps it has hit a major support level already. If you feel this way, then it is okay to buy the stock.
But what if you are wrong? What if the company actually needs to be sold? I think you will agree that this is an entirely different situation than if you are just buying because you want to make a quick buck. The first thing to think about here is if you are personally going to get involved with the stock. Are you working for yourself or are you working for someone else? If you are working for someone else, you need to think long term here venta dolares tarjeta de credito.
The best way for me to answer the question, "What should I buy?" is to think about my personal behaviors. If I am buying stocks based purely on my emotions, then I am probably not going to see great success. If on the other hand I am a disciplined investor who thinks about the long term here, then I can become very successful. Either way, you are always better off as an investor by following your own personality traits rather than what the market tells you that the market wants you to do.
