It is hard to tell since when Wall Street’s one-time reliable buzzword “buy low and sell high” has given way to the new investment mantra “buy high and sell higher.” A sizable section of investors today favor betting on winning stocks, with the belief that they can still surge higher.
However, this is a touch-and-go strategy which should not be followed blindly without a fool-proof plan. To make the gamble worthwhile, it is imperative to club the 52-week high price criteria with a set of other parameters.
In this screen, we will show you how to take a quick ride on the 52-week high stock bandwagon, and book handsome profits.
Why Bet on 52 Week Highs?
The 52-week high investment strategy is largely based on the presumptive “adjustment and anchoring bias” principle. This principle works on the belief that investors generally use the 52-week high price as a reference point and value stocks against this anchor. The fear of an impending price crash and a notion about these stocks’ overvaluation often lead a nervous troop of investors to sell them.