Many new traders and new investors make the mistake of looking for and buying cheap stocks. Do not fall into the cheapskate trader trap, instead just pay for quality. Cheap stocks are cheap for a reason, they are junk. Quality stocks rarely if ever trade for under $15 and the best stocks trade for $100, $200, $500 or more. Even initial public offerings come out with a price of $15, $20, or more out of the gate the majority of the time. Great stocks almost never trade under $15 at any time. Stay away from the temptation of wanting to trade bigger positions and start trading 1,000 shares of a $7 junk stock instead of a smaller share position in an Apple, Google, or Priceline.
Stocks are no different than other areas of life. If an NFL team wants to win a super bowl the majority of the time they have to pay for some top players, they would not get the worst players because they were cheap and then expect them to rise in value on the field, why would you expect the worse stocks to change their trend? You would not buy a cheap economy car and then expect it to perform like a luxury car or sports car, you have to pay for that performance. You can not expect a stock to perform like a 5 star restaurant at a McDonald’s price.
Stocks that have been worth every dime for traders and investors.
In the stock market like much of life you get what you pay for. If you want quality and profits in the stock market you will have to pay for it.