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Buy High - Sell Low

Probably the most interesting rule for successful trading is to “Buy High and Exit

Higher, and Sell Low and Exit Lower.” This is counter-intuitive to what we all

have a natural inclination to do, which is buy low, sell high. Most great trading

strategies are counter-intuitive. They are not based on our normal human nature

and the normal human reaction to the markets. They consistently make money

because they are designed with market sense not human common sense.

In the final analysis, any market is just a collection of individuals making decisions

and placing money in the market based on these decisions. Most of these

individuals are doing what comes naturally to humans, buying low and selling

high. Statistics show that 95% of these people lose money.

To be a successful trader, you have to do the opposite of what this 95% is doing.

It isn’t easy, because it goes against your human nature. But any strategy that is

successful over time will most likely follow the rule of “Buy High, Exit Long

Higher and Sell Low, Exit Short Lower.”

NOTE: What you have just read has been presented solely for informational or

educational purposes. No investment or trading advice or strategy of any kind

is being offered, recommended or endorsed by the author or by TradeStation

Technologies or any of its affiliates, agents or employees.

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