Should I sell my stock when it hits a 52-week high?

Investors ignore the possibility that the stock price can go higher, which leads them to sell. When a stock price reaches a 52-week high you may be telling yourself: “This stock price is up a lot. I must sell now because the price is high compared to where it has been over the past year and it may fall.”

Is a 52-week high good or bad?

Never buy a stock just because a stock is trading at or above its 52-week high. When a group of stocks consistently forms new 52-week highs for a long period of time, it’s a sign of danger.

What happens when a stock breaks its 52-week high?

Support and resistance levels are among the most common technical indicators investors use when determining price ranges for a stock. After a stock breaks through a 52-week high, it automatically creates a new support and resistance level. By adding that to the 52-week low price, a new price target has been created.

Are 52-week highs and breakouts the same?

The Difference Between a Breakout and a 52-Week High/Low A 52-week high or low is simply the highest or lowest price seen over the last year. A breakout is a move above or below resistance.

What happens when a stock reaches a 52-week high?

When a stock reaches the 52 week high, generally most of the investors sell their holding and book profit. Really a herd mentality. When a stock reaches 52 week low, many investors try buy the stock. But, matured investor , shy away and try to wait for furthur down in share prices.

Is it better to buy 52 Week high or 52 Week low?

It is better to buy a 52 week high stock instead of a 52 week low stock.People generally feel that if they buy a 52 week low stock than they have found the bottom and now that stock will go up and thus make profit? But big traders know this and sell all their holding at 52 week low thus small traders make loss when they buy stocks at 52 week low.

Is “buy low sell high” a good stock trading advice?

@NickT is right. “Buy low, sell high” is exactly as good advice for stock traders as “pick good numbers” is for someone buying lottery tickets. – Mason Wheeler Oct 21 ’15 at 12:00 5 What’s so special about 52? A year isn’t some sort of automatic growth cut-off point. – user2357112 supports Monica Oct 21 ’15 at 15:44 | Show 4more comments

Do small traders make loss when they buy stocks at 52-week low?

But big traders know this and sell all their holding at 52 week low thus small traders make loss when they buy stocks at 52 week low. Have you seen nifty going back to 3000 or 5000 points or even 7000 points? but yes nifty makes new life time high every few years.

https://www.youtube.com/watch?v=G75YejTceaw