52 Week Lows A Realistic Analysis To Determine Stocks To Buy

The stock market is a very tricky place where investors either end up earning huge profits or suffer huge losses in a matter of a few weeks or months

. Many of us end up buying stocks that give poor returns since we really do not know when to successfully buy or sell stocks. A simple understanding of proper stock market concepts can help us reap profits in the market. Knowing which stocks to buy and when increases the potential to earn profits.

What are 52 week lows?

A stock that is at its 52 week low doesnt necessarily mean that the worst is over. Many believe that the best time to buy a share is when it has hit its low or is near it. However, on the other side, it could also mean that the worst is yet to come. It is definitely not the right time to buy shares for various reasons.

Any stock that has hit this low should be setting off alarm bells loud and clear. The reason for such a low could be that the company isnt doing too well and some of the decisions taken arent providing positive results. It could also be possible that the financial position of the company isnt too healthy. Many believe that these are the best stocks to invest in; however, stock charts can help you analyze it accurately.

Is it the right time to buy?

The simple reason why you should be cautious before buying stocks that have reached 52 week lows is because it may not be the lowest point yet. There is a strong chance that it could set a new low that is far below its current price at 52 weeks.

It could also be possible that the company might bounce back to previous highs or even higher but it is quite risky to invest your hard earned money on such stocks. For any stock to give you handsome returns, a companys fundamentals are very crucial. Apart from this, market conditions and decisions relating to the financial position of the company could play a big role in terms of returns.

Barchart is the right tool to spot those high return yielding stocks with unmatched accuracy. It helps you determine stocks to buy with real time updates. The stock charts tell you how stocks have fared over a period of time, which makes it that much easier to decide what to buy.

Visit www.barchart.com to make use of this realistic analysis and buy the best stocks.

by: Ryan Harris

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