Most would say buy an undervalued stock as it falls in price. But, what if it does not, and charges upwards before you are even onboard? I’m sure many of you have encountered such a situation, where you wait for the share price to drop a little more before buying but it never does and decides to keep rising ceaselessly without making any significant rebound.

Educational Purposes Only

How do you know when the stock you’re buying at an all-time high is still undervalued and not you falling victim to the Greater Fool Theory? We all know what happens to the Fool, and none of us want to be caught in that position. We sometimes encounter stocks that have already gone up so much, that we can’t help but feel that such stocks are probably already fairly valued or even overvalued. Coming from a Technical Analysis background, I often find ...  ...