When to Buy Technology Stocks

Technology stocks can be huge growth stories, but buying them is all about timing. As technology stocks grow, they have periodic corrections, followed a period of flatlining and building support, then an upswing to more growth. You do not necessarily want to buy a technology stock such as Apple, Netflix, or Google when it is in its growth period. You also do not want to buy a technology stock when it is in its correction period, because the technology stock could still drop more. So when do you buy technology stocks? The answer is you buy technology stocks after the correction when the stock is building support. You will know that a technology stock is building support, because it will be in the doldrums. For up to weeks or months on end, the stock will be trading in roughly the same range. The technology stock might have days up half a percent and days down half a percent, or even more extreme gains or declines, but the overall range will be steady. A period of building support is a signal that the correction in a technology stock is over and it is time to buy. The time after a correction is also the perfect time to buy a technology stock, because all the hype and red hotness of the stock has temporarily faded. Therefore you will get a chance to jump on the technology stock before it gets red hot again. Of course, take profits when you are up high, and reinvest them after a correction.

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