Micro cap stocks set to skyrcoket on january 25 2017

Instead, look to a smaller index for guidance. That stalwart mix of mega cap stocks behaves much differently than most low-priced stocks. By that I mean you should not have a portfolio of low-priced stocks built to reflect the Dow Jones Industrial Average. You still have to know your target investment structure. It is true I supported the idea of buying low-priced stocks at the highs and also at the lows, so which is it? The truth is, it always makes sense to have single digit stocks in your portfolio. I know it sounds like I am talking out of both sides of my mouth here. On the contrary, the time to be buying stocks like that is after everyone else has already abandoned ship. We don't hear many stories about investors losing everything on the stocks that are already beaten down. Often times we see investors getting burned on those high flyers. Low-priced stocks tend to be among the first to recover from panic selling. The small price tag alone will get many investors to 'buy low.'ДЄnother reason single digit stocks will work at the lows is because investors begin to scour the entire universe of stocks looking for what is working. They are the ones that stand to see significant returns when the market turns around. When markets are at the lows, single digit stocks are among the best plays out there. If things turn sour, the high priced stocks will be among the first that are sold. Adding low-priced stocks to your portfolio works as a defensive measure. Apply this same idea to the high flyers with big price tags. Wise investors know that you cannot have all your eggs in one basket. With the overall market raising all prices, the lower you go on your entry, the better chance you have of outperforming down the road. This allows investors the chance to get in on something that is still fairly close to the ground floor. The market is too concerned with which stocks are soaring towards triple digits (or even quadruple digits in some cases). Low-priced stocks work when the market is at the highs because these are the stocks that have been overlooked. Single digit stocks are attractive to investors for many reasons, but when is it best to build them into your portfolio? Let's take a look at why now is a good time to buy low-priced stocks.

Regardless of their timing abilities, one area where investors have seen good results is low-priced stocks.

While this simplistic goal sounds easy, it is almost impossible to achieve. They want to get in at the lows and get out at the highs. Investors are always trying to time the market.

Micro cap stocks set to skyrcoket on january 25 2017