You have a highschool party to attend for the night but you were thinking what to wear for the party till you forget about the time and ended up late and missed the fun. Imagine by the time you arrived at the party, the booze were gone and most people were in the midst of leaving the party with their respective dates after having a good time at the party dancing and celebrating.
Well, it goes the same for the stock market. Generally you should avoid buying a stock that's already had a big run-up in value, unless you have a solid reason for expecting it to keep rising. Particularly vulnerable are stocks that have received a great deal of recent media exposure. Prices of highly publicized stocks may have reached their peak and be poised for a correction. Unless you are very confident of the company’s fundamental and the future prospect for the company, it is advisable to stay on course and observe further before joining the herds. I know this is difficult but we have to be very discipline in investing. If you have a proven system to follow, just follow the system and be disciplined.
Happy Investing.....
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