Investors who try to time the market, as well as those who don’t think they are doing so but end up doing it anyway, will often have their buy-and-sell timing turned around. It’s a mathematical fact that investors are more likely to buy high and sell low, which is the opposite of investing for profits.
Often, investors don’t understand the business or financials behind a stock symbol. The buying and selling frenzies are driven by greed and fear. These emotions lead to buying high and selling low.
This post originally appeared at Investors Alley.