Every investor dreams of buying low and selling high.

 

Yet through the different market cycles, many investors do just the opposite:

They tend to buy when the market is near its peak and sell when the markets are struggling. 

 

This kind of emotion-based investing can be harmful to your long-term goals, since it ignores fundamental valuation in favour of following market momentum.  Stocks tend to be overvalued when the markets make new highs, and undervalued when they reach their lows. 

 

Here are some sound investment principles to keep in mind in today’s fast-changing markets.  For the full article read here