The answer is counter-intuitive to the average investor. More money is lost BUYNG LOW or more appropriate PICKING THE BOTTOM. The "Buy Low; Sell High" just doesn't apply to the average investor. The first thing new investors do is "look for bargains". The stock was 30; now it's 15. it's a deal! It is natural instinct to get things 'on sale". I call this the "Mini-Buffett Syndrome". The market is wrong. Look at the information. It has a P/E of 10. It's cheap.
This strategy will cost you dearly. Stocks are cheap for a reason- you just don't know what that reason is yet. You are not finding "steals" that nobody else hasn't noticed. I know it feels "Great" when you pick the bottom- like you found a treasure at the bottom of the sea.
The problem is that stocks hitting new lows-go lower.
I just saved you thousands and thousands of dollars on your "Market Degree".
I know. I paid a hefty tuition myself early in my career;)
