It is selling that counts!

The market is made of buyers and sellers, and they have two different views from each other.

Two reasons to buy:

1) Right value, under value, or growth. The buyer is expecting the price to go up in the near, short or long term future, and depending whether you are traders or investors and also you are less worry that its price will crash.

2) Short covering

Fours reasons to sell:

1) Profit taking (no single reason why people take profits, it is just too complicated)

2) Cut losses

3) Forced selling (really painful, but ones have no choices under such circumstances)

4) Short selling

From the force of buyers and sellers, we know why market fall rapidly and climb slowly. There are potentially more sellers.

Then, why especially those hardcore value investors find it so hard to sell. Their common excuse is always: it is hard to time the market.

To accumulate wealth over time, we have to learn to sell and make profits. It does not matter who you are? Traders, investors, property owner, stall owners, business owner. It is selling that counts. Selling at profit, and take regular nett profit, sometime, we have to take losses to swap out really bad investment to a better ones. Without regular nett profit taking, we will not be able to witness the magic of compounding your gain. It is the magic of compounding that enable ones to reach your final goal of investing - your day of financial indpendence or freedom.

Why it is easier to buy than sell? Probably, buying is part of our nature. We buy, buy, buy as we consume. We always find reasons to justify to buy. Few of us are in the business of active selling so it is not in our nature to sell. Many of us are in the business of indirect selling of our time, energy, and talent.

So we can always justify our decision to buy a stock based on whatever methods we use. But, when it comes to selling a stock, it has become difficult. Why? Probably, it is not in our nature to sell. Selling a stock means we has made a conclusion to our easier buying decision. We want to avoid the seller remorse. Maybe we worry it can go up after selling, because it is difficult to time the market, the seller remorse will come to haunt us when it continue to climb higher, and higher.

When we buy, and hold, there is always hope, and it is this hope that keep us going. When we sell it, we terminate this hope and force us to look squarely at our easier buying decision. It can be really bad decision to sell and now we have lost the hope of making a fortune. Beat our heart and knock our head.

I think learning to sell and willing to give up hope is equally important to learning to buy and holding on to hope.

Selling can be as easy as buying. There will be chance to buy back and not necessary, we must buy at the last purchase price, but it can be higher too.