The automatic buy low/sell high strategy is one of over 1,600 I have studied. It has its advantage if it can be disciplined. The disadvantage is that many of the strategy’s followers aren’t disciplined.
Moreover, it’s not simple to use, particularly when applied by average investors, who usually have difficulty in its implementation.
Studies show that buy low/sell high strategy may return more than haphazard, in-and-out market trading, but only if it can be disciplined. That effort, however, can be a questionable undertaking.
The natural tendency for any trader is to stay attuned to the market. Few investors, even professionals, can master that discipline, in an attempt to determine highs and lows, amidst constant market chatter.
The main disadvantage: Many of this strategy’s adherents are not disciplined. They wind up mistakenly attempting to time what they feel are appropriate buying and selling points. ( See the Earl J. Weinreb NewsHole® comments.)
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