That's true but, unfortunately, that "philosophy" usually motivates a lot of people to stay in a stock too long on the way down. They usually don't have a pre-determined point at which they will sell, allowing their emotions to take over.
He also said the stock market is run by two emotions: greed and fear. I?m not sure if ?greed? is accurately defined as a emotion, but what it conveys seems to be a general truth.
He also said the stock market is run by two emotions: greed and fear. I?m not sure if ?greed? is accurately defined as a emotion, but what it conveys seems to be a general truth.
Whether you call them emotions or something else, these are the two, primal forces at work in the markets. Because the markets are exercises in mass behavior, we poor humans tend to make decisions based on whatever these primal forces are shouting in our faces at any given moment. Usually they are poor decisions, arguably the opposite of what we should be doing.
Funny story: On a Friday afternoon, about ten years ago, I had just written a big check which I barely had enough cash to cover. My plan was to sell some of my AAPL the following Monday to keep myself well in the black. That very afternoon, at the very moment I was at the bank writing the check, AAPL plummeted by 50% in after-hours trading. I was horrified but decided that I'd find some other way to make my finances work. Good thing, too, since those share have gone up ten-fold since then.
So when's a good time to sell? Good luck with that question.
I tell you what .... you give me a portfolio where my "safe bets" gain 50% every 2 years and I will be satisfied with what I can accumulate, thank you very much.
I can only hope you were being sarcastic, or better yet, you don't put your "philosophy" into practice in the stock market.
I didn't say apple hasn't performed well over the last few years in comparison to the stock Market there in. Just that investing in something like apple is never going to give you 400% retunes that could be found in the ultra high risk markets and private companies.
Investing in any company in the Market apples in is relatively safe due to what you actually have to be to get there. Apple is a safe bet because it's highly unlikely you going to loose all your money, at worst you just wouldn't make any.
He also said the stock market is run by two emotions: greed and fear. I?m not sure if ?greed? is accurately defined as a emotion, but what it conveys seems to be a general truth.
He sounds like s wise man .... greed is a predominant "driver" in the stock market and is a huge contributor in the Losing side of a trade. The thing I enjoy about the stock market is the opportunity to observe "mass psychology"in action.
I didn't say apple hasn't performed well over the last few years in comparison to the stock Market there in. Just that investing in something like apple is never going to give you 400% retunes that could be found in the ultra high risk markets and private companies.
Investing in any company in the Market apples in is relatively safe due to what you actually have to be to get there. Apple is a safe bet because it's highly unlikely you going to loose all your money, at worst you just wouldn't make any.
A few facts about Apple stock:
July /06 ... 50.67
Dec. /07 ... 199.83 ...294% gain in 17 months
Feb. /08 ... 119.46 ...40% decline in 3 months
May /08 ... 188.75 ... 58% gain in 3 months
Oct. /08 ... 97.07 ... 49% decline in 179% gain in 4 months
April /10 .. 270.83 ... 179% gain in under 2 years
may /10 ... 235.86 ... 13% decline in 1 month
today ... 292.32 ... 24% gain in 4 months
from july/06 to today is 477% gain
I'm not picking on your post ... it's just that, too often, I see people commenting, or even worse, investing their hard earned $$$$ into the stock market with an obvious "lack of experience" in the stock market.
One: Your comment (never going to give you 400%) is wrong because Apple's gain from 2006 to today is 477%:
Two: (at worst you just wouldn't make any) ... is wrong because there are 3 timeframes since 2006 that would give you the "opportunity" to do just that ... lose $$$$ .... 40%, 49% and 13%.
(ultra high risk) ... Don't forget that there is a direct and opposite correlation between risk and reward. People with little or no investing experience tend to forget about the risk part of the equation and only focus on the possible (but not probable) reward.
If you take anything at all from my post, please take this. ... There is one certainty when it comes to the stock market .... and that is .. there is nothing certain about it except that it should be called gambling, not investing.
If you take anything at all from my post, please take this. ... There is one certainty when it comes to the stock market .... and that is .. there is nothing certain about it except that it should be called gambling, not investing.
Comments
That's true but, unfortunately, that "philosophy" usually motivates a lot of people to stay in a stock too long on the way down. They usually don't have a pre-determined point at which they will sell, allowing their emotions to take over.
He also said the stock market is run by two emotions: greed and fear. I?m not sure if ?greed? is accurately defined as a emotion, but what it conveys seems to be a general truth.
He also said the stock market is run by two emotions: greed and fear. I?m not sure if ?greed? is accurately defined as a emotion, but what it conveys seems to be a general truth.
Whether you call them emotions or something else, these are the two, primal forces at work in the markets. Because the markets are exercises in mass behavior, we poor humans tend to make decisions based on whatever these primal forces are shouting in our faces at any given moment. Usually they are poor decisions, arguably the opposite of what we should be doing.
Funny story: On a Friday afternoon, about ten years ago, I had just written a big check which I barely had enough cash to cover. My plan was to sell some of my AAPL the following Monday to keep myself well in the black. That very afternoon, at the very moment I was at the bank writing the check, AAPL plummeted by 50% in after-hours trading. I was horrified but decided that I'd find some other way to make my finances work. Good thing, too, since those share have gone up ten-fold since then.
So when's a good time to sell? Good luck with that question.
So when's a good time to sell? Good luck with that question.
When it’s at its highest value, within the set of after the time you bought it and 3 business days before you need the funds.
When it’s at its highest value, within the set of after the time you bought it and 3 business days before you need the funds.
Oh, a wise guy!
I tell you what .... you give me a portfolio where my "safe bets" gain 50% every 2 years and I will be satisfied with what I can accumulate, thank you very much.
I can only hope you were being sarcastic, or better yet, you don't put your "philosophy" into practice in the stock market.
I didn't say apple hasn't performed well over the last few years in comparison to the stock Market there in. Just that investing in something like apple is never going to give you 400% retunes that could be found in the ultra high risk markets and private companies.
Investing in any company in the Market apples in is relatively safe due to what you actually have to be to get there. Apple is a safe bet because it's highly unlikely you going to loose all your money, at worst you just wouldn't make any.
He also said the stock market is run by two emotions: greed and fear. I?m not sure if ?greed? is accurately defined as a emotion, but what it conveys seems to be a general truth.
He sounds like s wise man .... greed is a predominant "driver" in the stock market and is a huge contributor in the Losing side of a trade. The thing I enjoy about the stock market is the opportunity to observe "mass psychology"in action.
I didn't say apple hasn't performed well over the last few years in comparison to the stock Market there in. Just that investing in something like apple is never going to give you 400% retunes that could be found in the ultra high risk markets and private companies.
Investing in any company in the Market apples in is relatively safe due to what you actually have to be to get there. Apple is a safe bet because it's highly unlikely you going to loose all your money, at worst you just wouldn't make any.
A few facts about Apple stock:
July /06 ... 50.67
Dec. /07 ... 199.83 ...294% gain in 17 months
Feb. /08 ... 119.46 ...40% decline in 3 months
May /08 ... 188.75 ... 58% gain in 3 months
Oct. /08 ... 97.07 ... 49% decline in 179% gain in 4 months
April /10 .. 270.83 ... 179% gain in under 2 years
may /10 ... 235.86 ... 13% decline in 1 month
today ... 292.32 ... 24% gain in 4 months
from july/06 to today is 477% gain
I'm not picking on your post ... it's just that, too often, I see people commenting, or even worse, investing their hard earned $$$$ into the stock market with an obvious "lack of experience" in the stock market.
One: Your comment (never going to give you 400%) is wrong because Apple's gain from 2006 to today is 477%:
Two: (at worst you just wouldn't make any) ... is wrong because there are 3 timeframes since 2006 that would give you the "opportunity" to do just that ... lose $$$$ .... 40%, 49% and 13%.
(ultra high risk) ... Don't forget that there is a direct and opposite correlation between risk and reward. People with little or no investing experience tend to forget about the risk part of the equation and only focus on the possible (but not probable) reward.
If you take anything at all from my post, please take this. ... There is one certainty when it comes to the stock market .... and that is .. there is nothing certain about it except that it should be called gambling, not investing.
Good Luck.
If you take anything at all from my post, please take this. ... There is one certainty when it comes to the stock market .... and that is .. there is nothing certain about it except that it should be called gambling, not investing.
Amen, brother.