As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Technical Analysis and Charting
Stock Tips

Sunday, 13 December 2015

Why Sell The Winners And Not The Losers???

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?


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