Buy High, Sell Higher

I was walking around the business school this morning, and I bumped into some friends who were asking me about stocks, particularly, TIE, SLW, and AIRM. These are high flier stocks that are very near their 52wk highs, and I told them that I was bullish on all 3 of them.

They were surprised that I was bullish on them: "TIE is way too high right now… I’ll buy it when it goes lower." For some reason, new investors always take the "buy low, sell high" idea way too literally, and will pay their price to the markets to unlearn these bad deas.

It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower." - William O’Neil

This reminded me of an insightful quote by William O’Neil that I spotted on UglyChart.