When it comes to investing, most people get it wrong. They wait until prices are so high because they have gone up so much, and it seems like they will go up forever, then they buy. Then things go down, and they fret and hold, hoping they will go back up, until prices are so low that they can’t stand it anymore and then they sell. So they have bought high and sold low.
Buy when most are selling, and sell when most are buying is the right way to do it.
Have you done this?
Easier said than done. Most people don’t PRACTICE buying and selling like this. They may face this situation just a couple of times in their life, so facing the uncertainty of such a decision, they tend to follow the herd (safety in numbers) and then become just another lemming.
Good advice for investing, though, and other actions in life. Wiser men tend to avoid herds whether it is investing or forming opinions. They are commonly called “contrarians.”