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How often do big company stocks rise up in worth?


Mickey
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I'm curious about investing into company stock. When investing in stock, especially a big company, how often do their stocks rise and fall? Do most big companies have high priced stocks? Or do they fluctuate from high to low? 

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I think they tend to stay pretty high unless something happens out of their control. An example would be with Facebook being down for several hours. A lot of people pulled out their stocks and it cost the company as a whole millions of dollars. 

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Stock prices go up and down all the time. The older and more stable the company is the more stable that stock price should be. 

Remember after the initial IPO when buying shares on the market you are not exchanging with the company but another person in the market. Stocks remain stable when results are more predictable. 

The less predictable an asset it the more volatile it will be in either direction. 

If you look historically sometimes things are high and sometimes things are low. 

I always suggest new investors just start with a index fund with low fees to spread risk around. 

If you really have the desire to pick individual stocks a strategy that has served me well is buy when something is not popular.  So when you start hearing all the doom and gloom stories. That is the time to buy according to my set of strategies. People will call you crazy and not agree with you but look at the things people like to buy. 

People enjoy buying stocks that are popular. That everyone is talking about. It makes them feel safe and secure. The problem is the more popular something is the more crowded the trade is which means you are likely paying to much for the asset. 

In the end it all boils down to your own goals. Go in to every investment with a plan just you do with a business. Have a target buy price, and a exit strategy. That way you can just set up your trade in your brokerage account and let it execute without emotion. 

The most common mistake people make is buying when something is hot and selling when its not. 

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