Generally, when people think of the stock market, they tend believe that its difficult or takes years to get a good understanding on how it works. But it's not as difficult as one may think. In fact, if you have a good enough grasp on reading and interpreting a stock’s quote summary, then you have what it takes to make educated small scale investments. Now remember that I said small scale investments, because you don’t want to perform medium to large scale investments based solely on the stock’s quote summary. You are going to need to do more research and more investigating on a stock before planning to invest larger sums of money. Nevertheless, the stock’s quote summary is still an important resource where you can quickly gather vital data on any stock.One of the most valuable pieces of information included in a stock’s quote summary is the 52 week range. The 52 week range displays the stock’s lowest trading price and the highest trading price for the year. This data in invaluable because you will be able to get a good feel of where the stock has been. The data is also helpful in estimating the stock’s future prices. If you look at a stocks current trading price and see where it falls on the 52 week range, you will be able to make an educated estimation on where the stock is going. Here is an example that should give you a better understanding of how to utilize the 52 week range. Imagine you find a stock titled ABC. ABC’s current trading price is $51.94. You are planning to keep the stock for more than a year and make it a big player in your portfolio, but you don’t know if investing in the stock is a wise decision. Then you take a look at the 52 week range. The lowest price the stock has been at this year was $4.32 and the highest the stock has been $15.21. Would investing in this this stock be a wise decision or not?Well let’s reevaluate the facts. The stock’s current trading price is $51.94. The 52 week range said that the stocks lowest trading price for the year was $4.32. Here is a side note, whenever a stock’s trading price is under $5.00, it would make the stock a penny stock listing. The highest trading price the stock has been at in the last year was $15.21. Based solely on the data, provided investing in this stock would not be a wise decision. The current trading price very much inflated and there is no telling when the price would crash back to its normal prices. Though that was a very simple example, it is evident how important the 52 week range is. So whenever you are planning to invest in a particular stock, or if you are just browsing around, remember to glance at the 52 week range. It can be a determining factor on whether a stock increases or decreases in price. Don’t forget that the 52 week range is only one factor out of many that should be taken in to consideration.
Stock 52 Week High
PLEASE DO NOT BE SCARED about investigating a 52 week high play. Because, guess what - It is moving UP for a reason. And THERE is SUPPORT behind you.
The best thing you can ever know in stocks is "LET THE TREND BE YOUR FRIEND"
it has never become more clear to me because it actually is one of the safest ways to make money. Think of it this way, THERE IS NO RESISTANCE!!!!!!!!!!!
And, with a few simple Trend lines you can figure out support as well as set stop-losses.
Understand the Market - Stop Trading, and think for a second. I would first like to congratulate you for putting the Overtime into the Market (because these extra hours of DD are necessary to profit in the Wild Wild West which we trade in). Now that you have stopped trading think about WHY a stock hits a 52 week High.......Think about it. Would a Big Financial Advisor buy at a New 52 Week High if he thought it was the top? No, A stock usually hits a 52 Week High with Momentum, Reason, and Smart Investors Pushing it. I will note that some 52 week Highs are hit, and never broken. Also, Note a little trick on how to avoid head-fakes (by searching for news, earnings, and a reason for the run).
1)Ask Yourself - is there and ascending trend line??? Is it within 10% of the stock's current Price? Yes, then move on to the next one.
2) Ask Yourself - did we recently break a tested resistance line? Are we still within 5% of that SHELF? IF yes, continue......
3) Ask Yourself - DID we see BREAKOUT VOLUME?? Is today's volume above average? And, most importantly, Have you seen Large Block buys........and is today's BREAKOUT volume greater then the most recent RED volume.
WE HAVE TO BE SURE THAT BUYING Outweighs the SELLING. OTHERWISE we will be caught in a HEADFAKE, and trying to sell out of a FALLING ROCK.
4) Ask Yourself - IS the MACD above Zero? Is the fast line crossing the slow line today or tomorrow. Or has it in the past 2 days? Good, continue.
5) Finally, the Stochastic. Are we trending in a CONTROLLED manner? Is the move supported with Smooth Motion in the Stochastic lines? And is there still room in the Stochastic for more BREAKOUT?
After looking at all these different options let the trend be your friend and don't worry about playing a 52 week high stock. Remember there is a reason it is that high.
This article was written by Rob Rens of StockHidoeut.com Penny stock investing site to help members when buying penny stocks.
Both Stephan Smith & Robs are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Stephan Smith has sinced written about articles on various topics from Investments, Health and Investments. /. Stephan Smith's top article generates over 90500 views. to your Favourites.
Robs has sinced written about articles on various topics from Finances, Forex Trading Forex and Penny Stocks. Rob Rens of StockHidoeut.com Penny stock investing site to help members when buying penny stocks.. Robs's top article generates over 18100 views. to your Favourites.
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