A share/stock that has traded at the highest price during the time period that equates to one year is a 52 week high stock. Simply, the highest price at which a stock has traded in last 52 weeks i.e one year is called 52W high.
A share/stock reaching 52 week high determines possibility of strong gains ahead. However, 52 week high stocks must be thoroughly analysed before investing i.e an investor must look into the fundamentals, financials (Balance sheet, P&L statement, cashflow etc.) technical charts and follow the market movement as well before investing in 52W high stocks. Investing in 52 week high stocks may sound like a potential opportunity. At the same time you must evaluate the risk associated with it as well. Only considering a day's movement of price change may not be a good investing factor.
Investing is the simplest and the best way to set aside money while you are busy with life and have that money work for you.
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