What does the strategy "buy low and sell high" entail?

The strategy of "buy low and sell high" involves purchasing assets when their prices are relatively low and then selling them when prices increase, thereby realizing a profit. This principle is fundamental to investing and trading in various markets, including stocks, real estate, and commodities. The essence of the strategy is to capitalize on market fluctuations—the idea is to identify undervalued assets that have the potential for price appreciation and then sell them once their market value increases.

This approach hinges on the investor's ability to accurately assess the market trends, making informed decisions based on timing and price point. Successfully executing this strategy can lead to significant financial gains over time, as it emphasizes buying with the expectation of future value appreciation.

Other options mention specific scenarios or markets that do not fully encompass the broader principle of buying and selling for profit, which is why they do not capture the essence of this investment strategy as effectively.