Want to Be a Successful Investor? Avoid This 1 Mistake.
Don't chase the hype. Chase the bargains.
Overview
The basics of investing are fairly simple: Buy low, sell high. It can become tricky when you're not sure what's low or high, and an important part of learning how to invest is becoming familiar with valuation techniques.
But despite the very elementary directive to buy at the low and some glaringly high valuations, many investors still get caught up in the hype of exciting stocks and expect them to keep going higher. More experienced investors know that massive run-ups and astronomical valuations are unsustainable, and people who buy after a stock jumps can be left holding the bag.
Details
If you want to be a successful investor, the mistake to avoid is investing in overvalued stocks.
Source
Originally published at www.fool.com.