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Hi there,
I'm not a specialist in this sphere, of course, but here is some info I found:
There are several most widely spread strategies: first is to try to evaluate the price of the company, this requires a lot of analytical skills and some economic background. After that you can calculate the approximate value of the stock and compare it to the current value. If the current value of the stock on the market is lower than the one you got then the stock is underestimated and you should buy it. If it is higher then it is overestimated and you need to sell these stocks.
The other approach is to find a very alike company and try to analise how the stocks rate rises or falls there and based on this you can make some predictions.
The third approach, a very popular one, is the approach of "A housewife". When a person hears that the stock value of a company "A" has doubled since last month, he goes and buys these stocks. The problem here is that the information they get is a bit outdated and they buy stocks when all the rest are selling them.
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