Trying to Learn How to 'Buy Low' and avoid 'Buying High' - Bubbles vs Growth
So have been actively investing now for almost 6 months - pretty pleased to have not gone busto! yet
Guess a couple of months ago, had started noticing how many of those common beginner mistakes have been making that all the more experienced investors warn beginners not to make - like buying high?
Maybe what can make buying low so difficult is that it can be hard to tell in the moment if a high is really a high, or if it's as low as something's ever going to get because the price is never going to stop growing? Or if a low is truly a low, or if it's actually a high because the price is never going to stop falling?
Have tried looking at fundamentals, like what makes something valuable, and what might cause it to lose value. And have no idea what to expect from gold in the short or long term - guess people liked to buy it when gas was expensive, and inflation was high? Although tried buying it when inflation was expected to rise, and wound up losing money
It *seems* like Amazon should do well in the short and long term? But there's people who look at it's high valuation, and feel like it too is in a bubble? Something have noticed about Amazon is that although they've had missteps a couple of times, like when they unsuccessfully tried to get into cell phones late in the game, most of the time in the short-term their price has risen at a decent pace - unlike gold which seems like it sort of stayed the same price for about 30 years?
Not sure what to expect with bitcoin and ethereum in the short and long term? Opinions seem to be all across the board?
Guess the rate of growth for bitcoin and ethereum was much more rapid than it's ever been for stocks that grow consistently year over year. Has bitcoin grown something like 250% in 6 months, or something like that? And the most that stocks have grown year over year has been something like 50% due to increased demand?
Wonder if there's a certain rate of growth that'll tend to be a sign of a bubble, rather than sustainable growth? Wonder if bitcoin will continue to drop, or if now might be the time to buy while it's low?
Guess virtual currency can be much more volatile than stocks, which sometimes go nowhere for months at a time. Although guess those little growth spurts that stocks can have, which don't ever seem very large in their day to day movement, can really start to add up over time?
Lots of different investment choices!