I have a friend who always thinks the market knows something when a stock's price moves up or down significantly.
My response is to generally ignore the market price unless it is to my advantage. The important point is to assess the VALUE of the stock and compare it to the market's PRICE The difference between price and value is essential to understand to own stocks successfully.
If the price is higher than his value and he wants to sell, or the price is lower than his value and he wants to buy, take advantage of the market.
The key is to own quality companies with great management and excellent fundaments, then, let the market work for you!
As Warren Buffett always says, "Price is what you pay and value is what you get." Don't forget it!
Be smart, be well-read, be aware and be successful.
