Both can work. However I have the sense that "buy high and sell higher" will produce better gains in the long run.
I don't see the difference and don't get it... High/Low of what??? Higher/Lower relative to what??? I can't believe you guys can actually answer to this thread... *sigh*
This really depends on what type of investors you are - Buy low and sell high is good strategy for value investors. Value investors wait till the stock price fall considerably below the value of the stock and buy it. Buy high and sell higher is good strategy for growth investors. Find a good growth stock, buy when its 52 week high and ride the growth of the stock. I have been somewhat successful on this. Good luck,
Thank you for your constructive answer. I didn't understand TSGannGalt's reply until I read some of his other posts.
I believe, on my experience, that buying high is buying momentum, and momentum leads the big runs, wich means that you have something that a "countertrendtrader" (buying low) does not have. You need momentum to profit on the markets and momentum only shows with previous activity on the desired trend... so yes, you will buy not on the bottom but with some degree of "used" movement... some are afraid to buy a high price or already "expensive" price... , what they dont know is that most probably that is a very good place to buy inminent momentum... the one that will make you profitable.
This is just the latest round of the ol' support/resistence-versus-momentum argument. It all depends on which one a trader believes matters more: price level or price change. Like beauty, it's in the eye of the beholder. Move along, folks, nothing to see here.
Well, it is profound because, in reality, there is nothing more to be said. The whole thread is BS basically.