For Amgen, by the time stage 2 was clearly under way, the stock price had already advanced more than 80 percent from its 52-week low. This would be the point at which I would start to consider a new purchase; any earlier lacks confirmation and is premature, meaning you run the risk of being stuck in dead money. Most amateurs would think the stock is too high and wish they had bought it when it was lower, using hindsight as a guide. That’s why most amateurs don’t make big money in stocks.
