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?
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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