Question: How do I know if the price of a stock is already good for buying or selling? Asked at “Ask a Friend, Ask Efren” free service at www.personalfinance.ph, SMS, Viber, Twitter, LinkedIn, WhatsApp, Instagram, and Facebook
Answer: By your question, it seems you are in the stock market more for capital appreciation than for current income (i.e. earning cash dividends).
You have probably heard the adage of buy low and sell high. But how low is low and how high is high? The answer lies in the valuation of the company that the traded stock represents.
Think of it this way, when you first set out in your career, you had nothing but your equity. That equity was represented by your…
Keep on reading: Good buy or goodbye