Let Go of the Desire to Sell at the Top and Buy at the Bottom

Acknowledge that you can’t precisely time the bottom or the top, and let go of the desire to sell at the peak and buy at the trough.

For ordinary investors, the simplest and most reliable strategy is to buy assets when you believe they’re undervalued, and sell them when you think they’re overvalued.

Then build in a margin of safety, just in case you’re wrong.

If the stock price drops below what you originally paid, keep buying. And if it continues to get cheaper despite no material change in the company’s fundamentals, you can buy even more, driving your average cost per share lower.