When it comes to trade in Singaporean stock market(stock-tips), ‘Buy low & ‘Sell High’ is a common phenomenon to take leverage from the market movements. However, being a trader; it seems to be easy but at the time of executing it may be slightly complicated as market movement affect the traders psychologically but there are stock tips which could be very helpful to earn a profit.
Therefore, buy low & sell high strategy could be a challenging aspect to implement. In addition, traders can use following tools to implement this strategy.
- Traders can use ‘Moving Averages while implementing buy low & sell high strategy which would be a beneficial stock trading tips. These moving averages are extracted from the stock price and assist traders & investors to determine the stock trend.
- Moving averages of shorter duration as well as of longer duration is helpful to execute ‘buy low & sell high’ & protect from risk factors too using stock tips.
- For instance, while using the 50-day & 200-day moving averages; if the 100-day moving average crosses the 250-day, it produces a ‘buy signal’. Similarly, when it crosses the other way, it generates a ‘sell stock signals’.
- If you are long-term investors, then an approach of buying at high & selling at low is the best stock tips by using ‘business cycle’.
- As the market moves in a consistent pattern i.e. sometimes as a fear & sometimes as a greedy, the movement of fear is the best time to buy stocks while greediness is the time to sell stocks at high in online share trading.
- This extremity of the market takes place twice a decade & this consistent pattern follows the business cycle. When economy seems to be in downturn, its recommended to buy low
- When business cycle seems to be in development phase & economic activity is increasing, it’s recommended to sell stocks and shares at high.
‘Buy low’ & ‘Sell high’ could be a risky or complicated some ways. There is always a ‘Bull’ which holds a stock price to be low and a ‘Bear’ which holds it high. Being investors, it’s important to determine which stocks are high & which are at low and it can be predicted easily using stock tips.