Cheap Stocks To Buy

Trading stocks has been a popular topic lately with stories like Gamestop $GME dominating the headlines. Take a look at this chart by Google Trends showing the number of searches for "cheap stocks" since 2004:

cheap stocks
Cheap Stock Google Searches

When Hurricane Corona hit the market last March, searches for "cheap stocks" spiked before subsiding and then exploding again recently.

So what is a "cheap stock"? Is a penny stock cheaper than a stock that trades for more than $1,000 per share? Which is cheaper: a stock you can buy for $0.05 or a stock that costs $567?

The answer is slightly complicated and it is probably best explained by an old saying in capitalism which is "the price for anything is what someone is willing to pay for it." So was Gamestop $GME worth $300 per share? It was for whoever paid $300 per share at the time to buy it but it isn't worth $300 at this moment!

Invest in companies and not symbols. Generally speaking, instead of looking for "cheap stocks" it is probably best to look for "strong, profitable companies". If the price is higher than what you paid for it, then maybe it was cheap at the time you bought it. If the price is below your purchase price then maybe it was expensive when you bought it.

Fair winds and following seas and buy low and sell high!

Trading Tide Levels (at the time  of the post):

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This is for informational purposes only and the information provided does not encompass all possible or probable outcomes. Nothing posted here is an indication of future results or is a guarantee or promise of future investment returns. Investing in stocks or bonds carries risks including losing your entire investment. Nothing is recommended, advocated, or endorsed including any third-party links, resources, or advertisements of any kind. Any investment decisions are recommended to be in conjunction with a Certified Financial Planner with a comprehensive and personal financial plan and all other components that make up your own financial situation.

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