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Stock prices are known to be fluctuating and volatile. A bearish trend starts when the prices of shares fall and there are few buyers. Usually, the market finds buyers whenever they feel that the worst is over and now is the time to buy. A bullish trend occurs when there is an increase in the prices of shares and there are many buyers. A bearish trend is bounded by the market and market sentiments and may end up showing a reverse trend. Here are some tips to follow when you buy stocks the next time;
Stock prices are known to be fluctuating and volatile. A bearish trend starts when the prices of shares fall and there are few buyers. Usually, the market finds buyers whenever they feel that the worst is over and now is the time to buy. A bullish trend occurs when there is an increase in the prices of shares and there are many buyers. A bearish trend is bounded by the market and market sentiments and may end up showing a reverse trend. Here are some tips to follow when you buy stocks the next time;
- Rather than considering stock prices, consider the company. which sector the company belongs to, the profits position earlier, as of now and profit projections for the future. Are there going to any significant changes in the company's earning projections and whether it is something permanent or whether it is temporary.
- Therefore, even if the stock reaches the targeted purchase price, it is advisable not to accumulate it all at one time. The purchase may be done in two or three equated trenches over a period of a month or two.
- Short selling or selling part of the stocks you own when there is a bearish trend is another good strategy which could cushion the portfolio performance in the event that the prices show an upward trend.
- New companies have a good potential as there is no dearth of venture capital financiers. Their performance in the midst of national and international political and economical changes are to be watched and monitored closely.
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