Buy low sell high - I don't mean you. I mean most people thinking they can REALLY TIME the market and buy at the bottom and sell at the peak. I know you did not manage to sell at the PEAK, so logically it is not you. Just that you practice that concept.

Your scenario 1 only work for those who manage to buy at the lowest aka March 09, then if they sell anytime, they will earn, just a matter of peanuts or abalone. Your scenario 2 not really happening theoretically else, we will not see drop in trading volume.

My fren, buy low sell high is usually an expression by a LOT of ppl who mean buy lowest sell highest. Else it would be the same as buy high sell higher. Besides, it is common sense that we need to sell higher than our buy price to earn money. Else why you play stocks for? Do charity donating to KLCI?