Investors Should Pump the Brakes and Do This Before Buying or Selling Beaten-Down Growth Stocks
Remember high school English class? Well, it could come in handy for your portfolio.
One of the first things you learn about writing is the importance of a good thesis. It's the foundation of the argument you're trying to convey. Without it, your essay lacks direction.
The same concept applies to investing. Before buying a stock, you need a well-researched thesis for why you think the company will perform well. That investment thesis guides your decision-making. If the argument is busted, it's time to sell. If it's intact and the market has sold off the stock, it might be time to buy more.
Source Fool.com
