Should I Buy Stocks When They Are High and Increasing or When They Are Low and Decreasing?

If the stock has a big growth potential, it doesn’t matter if the price has increased. You should still invest. Read for advice and to learn more about tactics.

Filip Dimkovski
By Filip Dimkovski
Edited by Taj Schlebusch

Published May 24, 2021.

If the stock has a big growth potential, it doesn’t matter if the price has increased. You should still invest. On the other hand, a dipped stock may not always rise after falling, even though you might think it was a steal price. There isn’t a right answer, but I will give you some advice and tactics to help you further with your investments.

As a strategy that I often use, I put in a buying price range and a selling price target. Then you know that when the stock hits that target, you need to sell and move on to the next opportunity. The only exception to that is when the stock still looks like a bargain even after I’ve made a profit.

When I can see that it’s still a bargain, I become being greedy and continue.

If you feel the same about the stock and have researched thoroughly, take some profits from the first investment, and invest again.

In the end, there is no bulletproof strategy on the right time to buy, but the key is having a disciplined policy on why you buy, how long you hold, and when you sell. The key is to not become blinded by paper gains and forget to cash in your winnings when it makes sense to.