Buy low sell high vs buy high sell higher vs buy and hold
@Alvin Chow:
1. We don't trade the markets, we trade our beliefs about the markets. A good quote from Van Tharp. It is very true as we know there are many different investing or trading strategies out there.2. Some believe buying low and selling high is the only ironclad way to make money. It doesn't take a genius to understand that. This would result in investors focusing on valuation - is the price higher or lower than the value?3. This group believes in the mean reversion effect - what goes up must come down and what goes down must come up. Hence, they buy low and wait patiently for the rebound to happen. They are known as the value investors.4. Some believe buying low and selling high is dangerous, especially during a downtrending market. A stock that has become cheap can go down even more and be c