Buy low, sell high. <\/p>\n\n\n\n
You\u2019ve probably heard this investing cliche before. But when it boils down to it, investing really is that simple.<\/p>\n\n\n\n
Simple? Yes. <\/p>\n\n\n\n
Easy? Not at all.<\/p>\n\n\n\n
The challenge comes from determining what we mean by buying \u201clow\u201d and selling \u201chigh\u201d.<\/p>\n\n\n\n
To determine the prices considered to be low (\u201cundervalued\u201d, \u201ccheap\u201d) or high (\u201covervalued\u201d, \u201cexpensive\u201d, \u201coverpriced\u201d), investors fall into 2 camps: <\/p>\n\n\n\n
These are the 2 major schools of thought when it comes to approaching the markets.<\/p>\n\n\n\n
What we really want to know is how to predict stock prices. If a stock is undervalued, it will likely go up. If a stock is overvalued, it will likely go down.<\/p>\n\n\n\n
Before you learn how to predict stock prices and how to predict the stock market in general, you need to determine which camp you\u2019re in. Based on your camp, you\u2019ll know the exact tools and methodologies you can use to predict stock prices. <\/p>\n\n\n\n
In this article, we’ll discuss how you can build conviction in your trades. But first, a potential way to speed up your learning curve:<\/p>\n\n\n