I have been doing “Lessons Learnt as a Trader” series, but now since I have been investing, I should start a series for investing lessons so as to document and consolidate my learning journey.
Buy low and sell high
To make money, one has to buy low and sell high. This is a simple principle that people claimed to know but how many people really understand the meaning? When the market crashes badly, and stock prices are rock bottom, it would be the best time to buy stocks. But how many people have the courage to buy? When market is rising and they see their peers making money, they have the impulse to buy and join the “winning” crowd even though the stock price has risen a lot. In actual fact, people buy high, and sell low after the market crash. The key is to buy low, low enough that ......