Buy low, Sell high is the oldest investment cliche. Sounds simple, but it is very hard to do. Why? Psychology. Two things drive the stock market; fear and greed. Fear is a powerful emotion that causes people to sell investments and seek comfort and safety in cash or gold. There is a lot of fear around today.
Greed is an even more powerful emotion than fear. Fear is temporary, greed is permanent. Greed always overtakes fear. Greed also lulls us into a false sense of security. For most people logic and reason go out the window at both ends of the spectrum.
Warren Buffett says “Be fearful when others are greedy, and be greedy when others are fearful.”
For more goto Buy low, Sell high – Warren Buffett does, you can too
