Title: Why Acting on Stock Price Can Be a Mistake
Headings: 
Why Acting on Stock Price Can Be a Mistake
What Makes Investors Buy High
What Traders Do Is Speculation
Selling Low Can Be a Bad Decision
The Bottom Line
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Content: Why Acting on Stock Price Can Be a Mistake
Assets & Markets Stocks
Part of
Becoming a Seasoned Investor
Overview
Laying the Foundation
Build a Plan
Investment Objectives
Investment Fees
Understanding Growth
Understanding Yourself
Building Your Portfolio
Diversification
Stocks
Commodities
Real Estate
Foreign Markets
Forex
Bonds
Forming a Strategy
Buying & Selling
Mutual Funds
ETFs
Active vs. Passive
Index Funds
Long-Term Funds
Dividend Stocks
Reinvesting Dividends
Planning for the Future
Tax Diversification
Neutralizing Inflation
Allocating Retirement Money
Weathering Declines
Rebalancing
Why Acting on Stock Price Can Be a Mistake
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Ken Little is an expert in investing, including stocks and markets. He is the author of 15 books on investing and his career in finance includes roles as business news editor and VP of Marketing for a financial services firm. Read The Balance's editorial policies
Ken Little
Updated March 28, 2020
Buying low and selling high is investment advice that's been passed along for generations. It's the ultimate guide to successful stock investing and a virtual mantra of seasoned investors. Remove emotions from the equation. Invest for the long haul, even if that means decades. What Makes Investors Buy High
Many investors do the reverse. It's not that they start with the intention of buying high and selling low, but far too often, they use price and price movement as their only signal to buy or sell. Stocks that have gone up in price quickly—especially those in trendy industries with a lot of press—often attract even more buyers, which drives the price up even higher. People get excited about what they read, and want a part of the action.