Sell High??

The adage that I learned from my grandpa when I first started to invest was to buy low, sell high. This seemed like the most logical advice for any investor. It still makes a lot of sense to me, but the big question that still perplexes me is how do I know when a stock is high and how do I know when a stock is low? There is no definitive answer. There is historical data to tell an investor what the stock has done before, but most of the time that is bares no indication to what the stock will do in the future. For those of you who are investing and not simply gambling, relative highs and lows do not matter in the long run. If you are invested in a stock, bond, or real estate that is appreciating in value, hold on to it. By selling high you are opening yourself up to huge tax liabilities and perhaps losing out on the long run opportunity of an investment's returns.

As long as you decide to invest consistently and diversify your investment choices, don't worry about the short term price fluctuations.