As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Click to email CW8888 or Email ID : jacobng1@gmail.com



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.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday, 10 February 2019

Why You Must Be Better At Selling, Buying, Holding, Buying Back And War Chest??? All Are Equally Important!!!


Read? Mind-blowing math animation explains why stock market wealth is an ILLUSION that vanishes in a crash

Almost no one really understands the basics of how the stock market works, and they suffer under the illusion that EVERY stock share is worth the same price as the last share that was traded. (If you’re confused why this isn’t the case, you’ve been lied to… watch the animation below to learn the truth that Wall Street doesn’t want you to ever realize.)

Thus, in a rising stock market bubble, people who hold shares that were purchased at far lower prices suffer under the illusion that all those shares are “worth” the current high price.

As my animation video reveals below, that idea is nothing but illusion. In truth, share prices are only transmuted into real wealth when they are SOLD. Yet it is impossible for all the holders of the shares to all sell at the current price for the simple reason that selling shares causes their price to fall.

Thus, the mathematical reality is that all the outstanding shares of any given public company are really only worth a fraction of the current market price. This is easily demonstrated in any given market correction or crash where share prices plummet. Ignorant investors falsely believe their “wealth” is being “destroyed” when, in reality, that wealth never existed in the first place.



CW8888:

Taming that Illusion and getting nearer to real and lesser illusion of wealth or net worth in the Land of Distribution or going down Mountain.

We can't eat on Illusion of wealth in the stock market!















































9 comments:

  1. Money earned from stock market that is either kept in your bank or spent is yours!

    ReplyDelete
    Replies
    1. CW,

      We can't buy anything with percentages, and networth is like the reflection of the moon over the lake - an illusion - unless we sell and realised the gains ;)


      Yet some spend lots of time meauring and counting in 2 decimal places or quibbling over brokerage commissions when we all knew if we had sold near the highs, we could be several hundreds of thousands ahead in real money.

      Now that's sweating the small stuffs and ignoring the elephant in the room!





      Delete
    2. Net worth is like reflection of the lake is only truth for volatile assets.

      There are many assets that are "solid" like bricks & motar.

      In fact, I leave many life insurances alone because they are in the money.

      But will be selling one soon, maybe in 2021 because it has no maturity date.

      YMMV.

      Delete
  2. Stock portfolio unrelised gains are paper tigers

    It's the same as "U can't count the chickens before they are hatched".

    To me buying @ opportune price and time, though all other factors are important.

    Some don't even bother what they are buying as they sell in the same day.

    ReplyDelete
  3. In fact my US stocks portfolio value can varies from 62K to 74K just a matter of 1 to 2 weeks.

    And it seems a repeatable pattern for Now.

    So is selling also very important?

    ReplyDelete
  4. Replies
    1. Queuing for food can trust the wisdom of the crowd. :-)

      Delete
    2. Queuing for stocks esp IPOs can it be the same?

      I think it is less accurate than cueing for food.

      But i do, at times.

      Delete

Related Posts with Thumbnails