When to buy and sell investments

I can’t remember how many times I’ve heard the words, ‘buy low, sell high’ without ever really understanding what it meant. And as I didn’t understand it, I didn’t heed this wisdom, because wisdom, it surely is.

It only took a few decades before the penny dropped…

Let me give you a good example from the crypto market. Back in the Autumn of last year, Bitcoin, Ethereum, and most of the biggest coins rallied to new highs. This exuberance was short lived, and they have all plummeted to new lows as seen in the last few weeks. So, people are clearly selling.

That means the price is low, and it’s a great time to buy.

If you have a good quality asset that will increase in value over the long-term, such as Bitcoin or Ethereum, then the best time to buy is on a pullback, or a low point in the price. City-based properties, good quality businesses with an excellent and sustainable business model, such as Google, Amazon, Apple, Tesla, to name a few, as well as the goliaths of the crypto markets, which, arguably, are Bitcoin and Ethereum, are all good quality assets.

The best time to buy them is now, when prices are low. Then you hold them until the markets rebound, which they surely will, confidence returns, and prices are going up again. But when do you sell?

You sell when the price is high and everyone else is buying.

This means you will pocket a nice profit. You don’t have to sell all of it, just enough that…