What does it mean buying low selling high on Wall Street?

Question

can someone please tell me what it means to or what is buy low selling high. like what do you buy and how or to whom do you sell.
thank you

Answer 1

It is all a gamble. You buy stocks when they are relatively cheap on the market, say the average of the stock costs $10.00 over a period of two weeks. The low would be the low and the high would be the high for that stock. In order to make money, you would want to buy that stock when it is at it's cheapest (low, say $9.75) and sell it when it peaks (high, say $10.25). You would make $.50 selling that one stock. No one knows when stocks will go up or down, it mostly depends on the economy and the way certain stocks naturally go up and down. It's all a gamble and educated guess.

Answer 2

This is a simple economic law. You purchase a stock at a low price and sell it when the price has gone up. you therefore make a profit and that is what the statement means. Buy cheap and sell it when its expensive. Easy to say but not that easy to do. If it was everyone in the market would be rich.

Answer 3

Stocks are sold in certificate form. Each certificate has certain amount of shares associated with it. The share's worth rises, and lowers in value daily, which is determined by how much profit the company is bringing in, and expendures (purchases, and overhead). As an investor, the goal is to buy these shares at the lowest price possible, and sell them at the price we possibly think it is before it drops in value. The difference is the profit we make. That's buy low, and sell high in a nutshell.

Answer 4

It's an old phrase that simple means what it says in order to make money with stocks..

If you buy a stock low (say at $10) and sell it when it's high ($12), you've made a profit of $2.

The "what" is securities, ie stocks, bonds and derivitives.

Stocks are shares of publicly traded companies. You can buy them through stock brokers. Online stock brokers like Ameritrade and Scottrade charge less than $10 per transaction. Full service brokers like Merrill Lynch can charge 5 X as much or more.

Go to Yahoo finance, and click on stock names. Put in some of your favorite places to spend money (like McDonald's, Nike, Starbucks), and you'll get their stock symbol. You can then look at their financial history.

Hope that helps..

ED

Answer 5

Buy stock at a low price. Sell same stock at a high price. Make a profit.