When Buy And Sell Stocks Essay

1162 WordsJun 17, 20165 Pages
When To Buy and Sell Stocks By Scott A. Cole | Submitted On July 27, 2012 Recommend Article Article Comments Print Article Share this article on Facebook 1 Share this article on Twitter 1 Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon 1 Share this article on Delicious 2 Share this article on Digg 1 Share this article on Reddit Share this article on Pinterest When to buy and sell stocks is a question that has been asked by traders and investors since stock markets were invented. There are literally thousands of ways to trade stocks and make a profit. The problem is that most investors do not have the technical skills or knowledge to obtain historical stock market data and then back test all of these strategies to find out which one will work best. Another problem is that in certain conditions, some strategies will perform better than others. With this in mind, keeping your trading strategy as simple as possible, and then following it with strict discipline, is the way to go. One of the best general models for trading stocks that will produce significant long term profits (if applied to the correct stocks) is a trend following strategy. Trend following strategies essentially buy a stock when it breaks out to a new high price of some level, and then exits the position at a low price. This actually sounds like "buy high and sell low" but the goal is actually to buy high and sell higher. This is counter to what most
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