Would you shy away from stocks that more than doubled within the past year? Consider taking a look at what happened with the greatest stocks of every bull market. They looked overpriced and risky to buy just before their biggest move up.
In a good market, opportunities such as these, which start with new price highs, will surface every two or three weeks. In fact, if you ignore this simple rule, you would miss out on just about every major winning stock.
As a rule, don't buy any stock that has risen more than 5% past its buy point.
However, there can be such a thing as an "over-priced" stock: one that truly has gone up too much, too fast and is likely headed down. As a rule, don't buy any stock that has risen more than 5% past its buy point. The buy point is explained in the lesson on charts.