Question

When buying and selling stocks, common wisdom says "buy low, sell high." What is meant by this? Is it really possible to do it? Why or why not?

Answer 1

Ideally, you would sense when stocks are cheap and buy them then and sell when stocks are expensive. This is "market timing," but few if any know the 'real" value of stocks at any time, so they don't know whether they are cheap or dear in fact.