Why Buying High Priced Stocks Work Well

Owning a high-priced stock may imply that you have a very high-quality company stock. You can still make a good return if the stock is in an upward trend during the growth phase.

Instead of buying low and selling high, some investors are attempting to "buy high and sell higher" when the high priced stock is on the move. Of course, investors should develop their own way of determining when to sell the shares.

Many investors do not like to buy high priced stock because they think that an overpriced stock will not go up and if it does it will not go up that much at all. This can be untrue as stocks in an upward trend will normally move up faster than stocks that have been crushed.

If you want to make money, it is always best to buy high quality stocks in an uptrend and hold them until the time is right to sell. Of course knowing when to sell can be very hard. Overall, the best time to sell a company share is at the highest point possible. A successful trader will sell as soon as the stock seems to indicate that it will not be rising anymore.

* Next: How to Get Rich in the Stock Market