Let's face it, most people invest in the market because they want something for nothing. They just take their hard earned money and throw it at the market without doing any research what so ever. They may have worked for years for that nest egg that they throw blindly into the market. They'll research the purchase of a TV for weeks and spend $2,000.. On the other hand, they'll throw $30,000 into the market without any real research. It blows my mind.
There is a huge difference between price and value. With most people just watching price, they have no idea if they are getting real value for that price. For example, if a stock drops 15% in one day, people rush into buy the "dip". The problem with this is that the stock may have been way overvalued before the 15% drop. While the drop makes the stock cheaper, it doesn't make it necessarily a good buy, but many assume that that is the case. It may just be a little less over valued.
Be smart, be well-read, be aware and be successful.
“Price is what you pay, value is what you get.”
- Warren Buffett
