In Uncle8888 series (16) - How to invest and make big money in the stock market?
The key learning point is "Men who can both be right and sit tight are uncommon."
Uncle8888 also mentioned "Buy and Hold is Dead".
- Men who can both be right and sit tight are uncommon.
- Buy and Hold is Dead.
- Does these two statements contradict each other?
- Is statement No 1 useless advice? (Brolp said: it's useless advice actually - when right sit tight. It's almost like saying when it's raining, bring an umbrella.)
- The two statements do not contradict each other.
- It is useful advice.
There are two conditions. Both conditions must be met before he can consider he is right.
Condition No 1: Early Bull in the Bull Market.
Condition No 2: Stock price doesn't look back at his purchase price level during correction.
If stocks are not bought during early bull in the Bull Market, the stocks will be eventually sold at the desired profit goal. In this sense, Buy and Hold is Dead if Condition No 1 is not there.
Even if stocks are bought during early bull in the Bull Market e.g. in early 2009; but subsequently the stock price corrected to near or fall below the original purchase. The stocks will be eventually sold for profits.
Only when both conditions are fully met Uncle8888 will know that he is right and will sit tight.
Do anyone think that the current market is an early bull in the Bull Market?
No. Right? So all stocks bought by Uncle8888 during this period are meant for sale.
Lastly, does anyone else still think that advice from Jessie Livermore is useless actually?