Buy High - Sell Low

Probably the most interesting rule for successful trading is to “Buy High and Exit
Higher, and Sell Low and Exit Lower.” This is counter-intuitive to what we all
have a natural inclination to do, which is buy low, sell high. Most great trading
strategies are counter-intuitive. They are not based on our normal human nature
and the normal human reaction to the markets. 

They consistently make money
because they are designed with market sense not human common sense.
In the final analysis, any market is just a collection of individuals making decisions
and placing money in the market based on these decisions. Most of these individuals are doing what comes naturally to humans, buying low and selling high. 

Statistics show that 95% of these people lose money.
To be a successful trader, you have to do the opposite of what this 95% is doing.
It isn’t easy, because it goes against your human nature. But any strategy that is
successful over time will most likely follow the rule of “Buy High, Exit Long
Higher and Sell Low, Exit Short Lower.”