How can you tell when to buy a stock?

Answer by  Richard88 (391)

Follow Warren Buffett's advice: buy it when it is selling for less than it is worth. You first need to establish what the business is worth. If you were to buy the whole business, you'd want more money coming out in the future than you are paying.

Answer by  Heloise (397)

It's a combination of luck and experience. Study past performance: what were the highest and lowest prices of the stock? The idea is to buy when the price is low, but you THINK it's going to rise. Track some fantasy purchases for a while, before committing real money.

Answer by  sairamesh100yahoocoin (223)

stock purchasing is one of dangerous thing, first you look one or two months watch the stock market, the you justify whether which stock is better to buy.. this is the easiest way to buy the stock.

Answer by  worker12 (293)

GE,JDSU, Examples. I buy when the stock is at its lowest,GE past history, $65. 00 stock ,$11. 46 current price, GE future windmill tech, alternative energy! JDSU,fiber optic co. march 2000 over $200. 00per share,today $5. 26.. I buy low for the long term.

Answer by  acgood (47)

You can study "technical indicators. " But I prefer to do tons of research and determine its prospects and what the company should be worth, then buy at an attractive price.

Answer by  Arshkabarf (14)

Try to buy stocks of companies that are either currently undervalued or have strong future performance indicators. The Price to Earnings ratio (P/E) is an important number to evaluate. A P/E ratio reflects the price of the stock compared to the earnings of the company.