Loss in stock market

Where to Buy and where to Sell

There is a simple hack to this let's suppose, you buy a packet of bread at ₹40 and you sell it for ₹35 what you have got? A loss of ₹5.

Most of the time beginners do this they buy when market looks green and sells when looks red to protect their capital. Lets support Market was at all time high and every stock is showing positive, most of the people think that now that the time when it'll give the profit, but no, market works on demand and supply anything that worth is more than what it should be, would you buy it? Nope. Let's understand this a bottle of 1L water is selling at ₹45 while it's MRP is ₹40 would you buy it? Nope, but let's suppose what if there is a hot sunny day and you are thirsty and you are somewhere where there is no water around? You buy it right? Yes because at that time it is a demand from you to the seller and there's the chance that he'll earn a great amount. Now in the market, when there was a covid-19 pharmacy stocks goes into demand while every other sector was declining. Pharmacy stocks went up by 2-5 times from their all time high. How?  There's a quote " when there's a on the streets, buy medicine" or something similar, there was a huge demand for drugs and every company was making profit from those drugs and when buyer come to the buying the seller starts selling them at higher prices and when this demand continues prices keep going high. So buy what's undervalued and in demand and could be.