| Mr.Metralha said: I just wanted to clarify one thing. If people tend to buy stock when its cheap and sell it when it is high to make a profit, who's buying stock when it is expensive then? I don't get that.
Also, I see many people literally collecting stock. They just buy it and that's it. I don't get it. The fact someone is a stock holder, makes that person earn money on a long term basis? If yes, how? |
I'm no expert but I can tell you most people buy rising stock, assuming it'll continue to rise. Many wait until it's the 'hot' thing and that's foolish, because by then the stock is probably overvalued, but people like to follow the crowd rather than think for themselves.
As for buying and holding, nothing wrong with that as long as they pay good dividends and there's a lot of stocks that maintain a steady value and steady pay-outs.
If I had the funds free I'd buy Nintendo stock right now. It's undervalued due to the last report and when the 3DS launches and becomes the next big thing, (moreso in the west than Japan where 3D screens are already commonplace on cellphones) it's stock will soar and then you can sell.
