1. Good companies buy their own stock.
2. Buy on the rumors, sell on the news.
3. Beware of “penny stock”:
• The price per share is low.
• The price will often go lower than one can imagine.
• The low price makes these stocks target for manipulation.
• They tend to trade “thinly”, sometimes going for weeks without a buy or sell.
• At times it’s nearly impossible to find buyers for those wanting to sell.
• 10 for 1 reverse splits happen occasionally, to boost the price.
4. Buy the stock that split.
5. Heavy volume, price rise – Light volume, price fall.
6. Buy on Monday, sell on Friday
7. Buy when there is Blood in the streets.
8. Invest in what you know the best.
9. There is always a year-end sell- off: sell before the final week of December or buy if the sell-off is deep and widespread.
10. Small stocks make the “January effect” :
• 1968,1970,1975, 1991 : low price stocks did better than high
• 1973,1988, 1996, 1998 : low price stocks did worse than high
11. When the recession begins: home-building, bank, transport, financial and utilities begin to perform under-expectation.
12. When the economic downturn: avoid from purchase sectors of chemical, energy, health-care, industrial, technology and insurance.
Q&A, General question on stock market
Jan 5 2009, 01:24 AM
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