But it got to the point where solutions were being created for problems that didn't exist, or whose resolution wasn't yet required by the marketplace. Lack of demand, if you will. Now we're working through the excess. That means layoffs, inventory write-downs, etc. First, I try not to overpay.
Valuation is important.
Quality research is important here. Third, I look to charts to try to add a sense of timing. Charts have been very helpful, too, in sending sell signals, which can help preserve capital in tough times. Finally, I like to see positive signals from insiders. It's also important to see institutional sponsorship in your stock.