It has nothing to do with the commonly known psychological bias in the investing/trading world - Loss Aversion! No! It has to do with the reality and not so much on psychology!
The Maths of it! When we really need that cash, we can't raise enough cash from the Losers. The Losers are as they are. They CAN'T be worth relatively much more in our investment portfolio!
It is the Winners that we can raise enough cash to meet our liquidity needs! This is commonsense. This is reality! This is fact! Forget theory and concept! When reality hits us hard; our mind will tune into more practical way to solve the immediate issue or trouble on hand. Tio bo?
I am 60+ yrs old uncle living in HDB heartland who has retired @ 60 on 30 Sep 2016.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 and now becoming full-time retail investor. So I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I have two sons and one daughter; two working adult children and the youngest son is currently in his 1st year SUTD.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2038
Last updated: 16 Oct 2016
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