Thursday, January 06, 2011

buy low or buy high?

You may have heard the investment adage: Buy low and sell high. This is one of the oldest pieces of investment advice. However, putting this advice to work is easier said than done.

One of the biggest challenges is determining what is "low." We did some research and found surprising results.

By buying stocks at their 52-week low, you're more likely to own the wrong stocks most of the time. Buying at the 52-week high, however, showed promising results.

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