"Higher prices bring out buyers. Lower prices bring out sellers. Size opens eyes. Time kills trades. When they're cryin', you should be buyin'. When they're yellin', you should be sellin'. Takes years for people to learn those basics, if they ever learn them at all." - Junk bond trader Larry McCarthy.
This is a combination of trend-following and value investing. Higher prices will bring out buyers, which will lead to trends. At the extreme, when there seems to be extremes in sentiment, do the opposite. These are good thoughts to have in mind, yet execution is much harder than you may think.
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