It is said “You must buy low, and sell high”. Here’s why this is not always the right approach

Mathematically if you can buy low and sell high you should be able to make a profit. But this is not the only way to make money. In fact, it often turns out that buying high and selling higher is more profitable.

Some of the best returns are made when stocks are said to be overvalued, but continue higher, nevertheless. If you are waiting for stocks to get cheaper when this happens, you may end up missing out on a significant portion of a bull market rally. If you are value investing, or plan to buy and hold a stock, then you will be looking to buy low. But momentum and growth investing may require you to buy stocks that are close to their all-time highs.