When should I buy to minimise my costs and sell to maximise the profits?
Buy low and sell high is the ultimate guide to successful stock investing. It is also the reverse of what many investors do, although they don’t intend to. They tend to buy high and sell low because they use price, and in particular, the price movement, as their only signal to buy or sell. Investors are tempted to buy stocks that have shot up and are basking in the media spotlight just to get a part of the action. They jump at a stock that is already trading at a premium… that’s how they buy high. Ironically, if a stock has had a good run up it may be time to sell, not buy (sell high). On the flip side, when a stock price is falling, most investors may want to sell in a panic, although the company has not lost any intrinsic value and still remains a sound investment…that’s how they sell low. In fact, when a stock’s price has fallen, it’s a great time to buy (buy low), if your research on the company suggests that it is a good long term buy. Experienced traders can make money jumping in
