| Each stock has a price that fluctuates up and down during a trading day. To make money you have to buy low and sell high. You have to predict which stocks will go up in value and which ones will go down. There are many strategies to make money and the most famous one is "Buy and Hold." In this strategy you buy a stock and hold it. This strategy doesn't work with bad stocks because you'll hold it until it's worthless. So the important rules are to buy when the stock price is low and to sell when the stock price is higher. One strategy is to sell a stock that is down a certain level from your buy point. Will this work? When do you get back in. These kinds of strategies are known as market timing because your trying to make the trades at a specific time. Dollar cost averaging is another strategy. |