Ordinary people, particularly the masses, are becoming more and more worried each day. The subject of their fears is brought about by what is in the news every single day about people losing their jobs, businesses that are not doing well, investments that fall down the drain and their impending retirement. However, not all people are sensing fear. In fact, some are actually happy and self-assured. These people are the rich ones. Why? This is because they know exactly how to deal with the economic crisis.
The first thing to do is to go back to the basics. The first rule for successful investing is to buy low and sell it for a high price.
This rule is very basic and you do not have to be a genius to understand it. Still, not all people are following it and there are reasons why people, particularly those who are broke, fail to follow it.
The prices are low whenever a problem exists. Prices dislike problems, uncertainty and chaos. The result is that they fall. When there is an existing problem, the prices are low and rich people see potential in that. They make use of the rule; “Buy Low, Sell High” and so they buy. As for the people who are broke, what they see is the problem. They get apprehensive over what is in the news and forget about the rule of investing wisely. They end up running away without seeing the potential of having a low price.
This is the difference between taking advantage of the situation over seeing the problem in it. Rich people invest while the fearful run away.
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