Overboughtoversold

Has your broker ever told you that a stock , Lower Credit Card Debt i'overboug' o'overso'? He probably went on the explain that the stock , How To Dissect Mutual Fund Returns you own (I hope you di't) had gone down so far that it now was oversold and due for a rally. He might also have encouraged you to buy , Zero Percent Balance Transfer Credit Card Advantages And Disadvantages an equal amount t'dollar cost , Lower Credit Card Debt avera' your position so that when''- he di't say that, I did)) it did go back up you coul'get out ev'. He might even say yo'could make a fortu'.

Waiting to get out even is the great trap that is preached by all the big Maul Street brokerage houses. What is even worse is most brokers and financial , Bill Consolidation Loans Lower High Interest Payments And Getout Of Debt planners believe it. What happened to all those beautiful company , Property Tax Grievances Can I Win Part 2 reports sent to you telling how wonderful this stock , An Overview Of Bridging Loans was before you bought it. Maybe you better read those back to him. Brokerage companies , Getting The Best Auto Loan Rates With Your Credit History do not want you to sell.

When any stock , Top Ten Investment Mistakes is going either up or down for any extended period of time it does seem logical that it can become overbought or oversold, but l's examine what that means to your ownership.

The reason a stock , The Importance Of A Stop Loss started up is because the underlying profit projection is going to produce substantial profits that will make the stock , Getting The Best Auto Loan Rates With Your Credit History more valuable. At some point it is going to reach a true valuation and should stop advancing. What usually happens is it goes beyond true valuation to what could be called overbought (over valued) and then starts down. You may be encouraged to buy , Why Payday Loans Should Be Avoided when a particular stock , Credit Card Fraud Be Aware become'h' and everyone is buying , What Should Your Homeowners Insurance Cover it. When all the sheep are buying , Why Payday Loans Should Be Avoided you want to be a seller or you will also be sheared.

Suppose all this was in anticipation of future profits that did not materialize? Then the rise , Low Mortgage Rates Rates Today Are Still Low Enough To Consider would turn over and head down. This would be more likely for a smaller company , Good Credit Is Not A Good Reason To Borrow More Money After Youve Achieved Financial Freedom than one of the giants, but giants have been toppled. If any fraud was involved the company , Whats A Reverse Mortgage And How Do They Work might even go bankrupt.

Think back to WorldCom that went to the moon and was finally flushed down the sewer. Did it EVER while it was tanking become oversold for a rally? Not hardly because there was no value. , Credit Card Fraud Be Aware Unless you truly understand how to , Bad Credit Refinance trade overbought and oversold situations the best thing to do is keep your hands in your pockets.

Beauty is in the eye of the beholder. Overbought and oversold is in the mind of the buyer/seller.

About The Author

Copyright 2004 All rights reserved.

Albert W. Thomas Former 17 year exchange member, floor trader and brokerage company , Credit Card Fraud Be Aware owner. F*R*E*E investment , Life Insurance A Gamble On Your Life letter www.mutualfundmagic.com. Author of best seller "IF IT DOESN'T GO UP, DON'T BUY IT!"

al@mutualfundmagic.com