Chasing Stock Is Not Idea

Investors can get caught chasing stock. What does this mean? A stock might be at one price and then all of sudden it soars. The initial thought is wow the price is rising so I need to buy in now. This is called chasing stock. Many variable can make a stock soar all of sudden. It's usually a sell off soon after which essentially drops the price. So you as the investor in a rush (reactivate move) to buy in will get stuck with shares until the price rise again. Frustration may set in because the mistake at this point is noticeable and your money will stall because of chasing stock. Unless you sell off and willing to take the loss.