Latest southern Colorado news, weather and sports from FOX21 News

When it comes to investing your money, the goal is to buy when the price is low and sell when the price is high. Our Money Coach Bill Stanley said this can be difficult, especially since we don't have a "crystal ball" to look into our financial future.

His advice? Focus on the long term. Invest the same amount on a regular basis (called "dollar cost averaging") and rebalance your entire portfolio periodically.

However, when it comes to individual stocks and mutual funds, it's entirely appropriate to buy the stock, then sell when it's gone up substantially in value, then buy it back again when the price has dropped. Stanley said the process can be repeated over the years, but you shouldn't attempt it unless you have some knowledge of the markets.

Stanley shared a personal experience:

"In my retirement account (and thus a long-term investment) I purchased Apache Corp, a domestic oil company, 10 years ago for $33 per share. I sold most of the stock when it reached $140 last year, then 5 months later it fell to $65 because of the recession -- so I bought more.

"Earlier this year, as the economy recovered, I sold some at $104 a share. Right now, it's in the mid-80s, and I'm considering buying more. The key is that I consider this as a good company in an industry which will grow over the next 20 years."

Some other ways Stanley said we can "buy low" and "sell high":

- Invest in a cyclical stock -- a company that will do well in good economic times, and not so well during a recession. Buy during the depths of a recession and sell during the recovery.

- Buy 200 shares of a company in which you have confidence. If/when the stock doubles, sell 100 shares. You'll have your original investment back, and the remaining 100 shares is profit.
What happens here is investors get greedy -- when a stock doubles in price, people hold on hoping it will double again.

- Consider the buy/sell strategy with stocks that pay good dividends. That way, you can add the dividends to any profit (or loss) you might make when you sell.

Stanley said this investment technique is not for everyone, but it does point to the fact that you should watch the price of investments so you can buy low and sell high.

Bill Stanley and Money Matters airs every Tuesday on FOX21 Morning News.
If you have a question for Bill, contact him directly: moneycoachbill@aol.com