Buy low sell high

Always buy low and sell high. Even a kid could understand this theory. Get something while it is cheap and sell it at higher price later.

If you look into detail, you will find out there are four instances in the buy low and sell high scenario:
1. An investment object for sale.
2. You to buy that investment object.
3. Someone to buy your investment object.
4. Time lapsed.

Out of all four instances above, from the point of investor's view, the one that in our control is really item #2, if we think deeply. Therefore, try not to worry too much about sell high because that's should be relatively easy.

My personal suggestion is to pay serious attention regarding buying low. It is pretty easy to buy low in supermarket whenever there is a sale. How do you know about the sale? From advertisements from the supermarket, from the people around you, from your regular visit to the supermarket etc. To the bottom line, "someone" inform you about it.

The difference between the "sale" of investment object and supermarket sale is that, there could be no one inform you regarding the sale. That's why you are not aware of when to buy.

Good investors are pretty good in noting the "investment sale" around them, similarly through the "advertisements", "people around them" and also regular visit to their favourite "investment store".

Overall market indices, news, broker's tips, government's announcement to rescue the investment market, internal people are buying a lot etc. could be potentially good inputs for you to buy low. Pay a little bit more attention to all of these information and you could buy low easily. Be proactive all the time.

Remember to filter out the deceiving news while you are reading the news.