Ken Stern, Aligned Capital Partners
If you think about it, Buy Low, Sell High is the secret to investing. Logically, it’s tough for anyone to refute that statement. So why is it so hard to do? It’s simply because psychology gets in the way. I’ve said many times that when it comes to money, psychology is more powerful than logic.
Psychologically, we think we can time the peaks and valley’s but really we can’t.
If you buy something for $1.00 and it goes up to $1.25, did you make money? What if you bought something at $1.50 and it goes to $2.50, did you make money?
What if you bought at $3.00 and it goes up to $4.00 and you sell it but it keeps going up to $4.50? Are you happy that you made money or are you upset that you sold too early?