Clever Ways of Finding Market Bargains

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( — February 12, 2018) — It is the goal of most investors to be able to parse through the thousands of investment options at their disposal and find the ones that have the potential of being the most profitable. Some swear by the notion of sticking to big-ticket stocks that provide dependable returns, but that, of course, means that their price is already high and the chance for significant growth unlikely. As a result, the only way to really find bargains is to set the aim much lower, at stocks that are priced at a level that the investor believes is well below what its underlying qualities suggest it should be.

Many people think of this kind of strategy of timing the market and looking for assets that are just about to rise as the dominion of day traders. But there’s no reason that the average trader, even one who is just starting out in his investment adventures, can’t also benefit from a bargain-hunting strategy or two. This is especially true if the would-be investor in question doesn’t have the capital necessary to afford some of the higher-priced options on the market. If they choose correctly among the possible bargains in the market, those marquee stocks will soon be well within their purchasing range.

Depending on the circumstances, a life insurance policy might be one investment that no longer makes sense for an individual, which is why some people need to understand how to sell their life insurance to reap some financial rewards. Here are some of the ways an investor can pick up great stocks that are priced cheap but potentially lucrative.

Owning It

There is a statistical theory in sports that says that a player who once performed at a high level statistically owns those stats, which means that he or she can always get back to that level even if they have struggled recently. Stocks operate in the same manner, in that it’s more likely that one can rise to a certain level if it’s been there once before, as opposed to those that have never reached those heights. So looking for stocks that were once champs but are now performing like chumps is always a good idea.

The Low Plateau

Stocks that are constantly falling should be avoided until they are out of their nosedive. But a stock that took a steady drop over time but has now leveled off for a solid amount of time might give off a sign that the company behind them has righted the ship. As a result, an upswing could be imminent at any time.

Quiet News

There are certain times when a company’s stock will jump on the possibility that something big is about to happen, like a merger or a new business initiative. If the event that precipitated the bump doesn’t take place right away and that buzz dies down, it could be an excellent time to jump in. It could be a matter of the company simply working out the logistics before the event does actually occur and really boosts the price.

These are just a few of the ways that bargains can be found. Diligence and strategy can help investors find some of their own.