The buy and hold investment strategy is a passive strategy in which a stock trader buys stocks and holds them for a long period of time, regardless of short-term price movements or fluctuations in the market. The use of such strategy does not necessarily mean that stock traders have to hold a stock forever.
If you want to employ the buy and hold stock strategy, you need to decide on which company to buy and hold and when to release. You should first start out by identifying the strongest performing sector or index. Then you have to target the strongest stocks within the respective sector. This is a relatively simple process and you do not have to worry about the daily fluctuations in the market. However, the main disadvantage of this strategy is that many investors find it difficult to know when to sell a stock.
Buy Low Sell High Strategy
Buying stocks at a low price and selling them at a high price is how you make money in the stock market. The goal of all stock traders is to buy low and sell high, but the problem is: when prices are low enough to begin with and high enough to sell?
How do we know whether share prices are low or high? To answer this, the price-to-earnings (P/E) ratio provides context by comparing the share prices to what the company actually earns. To decide whether a company has a low or high P/E ratio, we need to compare it with other companies in the same industry and to the market in general or against the company's own historical P/E.
Stocks with higher P/E ratios can be overpriced, while an unusually low P/E ratio relative to the competitors may indicate an under-priced stock. If you buy the shares when the price is too high, then you will have little room for profit. Therefore the best time to purchase stocks is when the P/E ratio is low, and sell them when the P/E ratio is high (when earnings are peaking).
Investor expectations will also affect the company's share prices. If investors expect a company to do well in the coming years, they will be very likely to invest more and thus push up the prices.
source - http://financelearners.Deleted/2011/05/buy-low-sell-high-strategy.html