Investing Strategy: Buy low, sell high

 

How do you make money in the stock market?

Oh, easy! Buy low, sell high.

Then how come so many people lose money in the stock market?

Again, easy! They buy high, sell low.

Hmm, interesting. So, how does one know they’re buying low, and selling high?

You ought to be able to answer two questions confidently, and back up your answers with hard evidence:

  • Can you figure out what the company is worth today?
  • Can you tell what the future prospects of the company look like?

Your answer to the first question tells you whether you’re buying high or low.

And, your answer to the second question will tell you, if your chances of making a profit are high or low.

If this makes sense to you, share it with someone who would find this interesting.


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