In This Chapter
• Why following the crowd isn’t a good idea
• How buyers can push a market beyond reason
• Why having a plan is important
• How tax rules can save you money
For the long-term investor there are only three important stock prices: the fair market price, the price they pay, and the price they sell. All other price movement by a stock is really not relevant and may confuse or frighten an investor into making a hasty decision. You should never buy a stock without a plan to sell the stock. When you work from a plan, you are less likely to be distracted by market news that is only relevant to stock prices for a few days. If you have a plan, you’re less likely to sell during a downturn or buy during an ...