Read? Should our investing decisions be continuous struggle??? (2)
How about Capital Re-cycling?
Are you a day trader?
If you are not a day trader, active capital re-cycling is not that easy as you think.
For those who have longer time horizon; they may be better off to be long-term investors than to be day traders who have another full time jobs to take care.
We also like to think that we can easily buy back stocks after selling for profits. Actually, it is emotionally tough to buy back. It is never an easy task to do it. BTW, look at your own past trading history, how many times have you actually bought back and still better off than holding for dividends and potential capital gains.
That is why Uncle always stressed the importance of Tracking and Measuring Performance. No tracking and measuring? How to tell?
Even Jesse Livermore, who is the author of "How to Trade in Stocks"(1940), was one of the greatest traders of all time.
In the famous book entitled Reminiscences of a Stock Operator, Jessie Livermore said: “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!
It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit.
And their experience invariably matched mine -- that is, they made no real money out of it.
I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”
Men who can both be right and sit tight are uncommon.
Read? Investing Made Simple by Uncle8888 (19)
Why are some retail investors holding to their stocks across market cycles of Bull and Bear?
For the right or wrong reasons?
One, holding on to losing stocks as it doesn't make sense to cut losses anymore. Sunk costs!
Two, Yield to Cost on holding stocks is higher than current market dividend yield.
Three, they are growth-dividend stocks and businesses are still growing or expanding.
Four, stocks are not "over-valued"???
No other reason, then sell???
Right?
Posts
uncle your phrasing huh i need to read it three times to understand if you are mocking holders like us.
ReplyDeleteIt's always better to leave anything behind 10% to 20% for the market. Rather then you can't leave the market at all. In investing there is no ends to regret.
ReplyDelete