A bargain-hunting value investor looks for what they consider to be healthy companies that are — for whatever reason — severely undervalued. A smart value investor buys low, then patiently waits for the "herd" to catch up. Unfortunately, most investors tend to do the exact opposite. We tend to chase trends and follow the herd.
A huge part of smart investing is psychological. We may want to buy low and sell high, but that goes against our instincts and biases.
When a stock is falling, we dump it. When a stock is rising, we buy it. We sell a company when the price is falling, because we are afraid of losing more money; we buy a stock when it is rising because we have a fear of missing out. To compound the problem, most investors are not experts at realizing when something is high or low "enough."
At times investing can feel like quicksand: The more you do and the harder you try, the more you sink. It requires effort to overcome the psychological biases that often prevent us from acting in our own best interest. It is human nature, for instance, to continue to make the same mistake over and over again or to not let go of stocks when we should, through either familiarity bias or disposition effect.