It's a very common fallacy to think that previous stock price somehow indicates the future price. However, one should remember that whatever caused the price to

It's a very common fallacy to think that previous stock price somehow indicates the future price. However, one should remember that whatever caused the price to fall in the first place, probably still exists, and unless remedied will continue to cause problems in the future. I like to buy stocks of companies that are in positive trend, reasonably valuated and have sound finances.