We constantly tell our readers “Don’t be Greedy” because greed (just like fear) has a way of blinding you.
But don’t feel bad. Even the most astute investors fall victim to emotions like greed.
The other day a friend of mine was boasting about having a 20% gain on a stock he recently bought.
He said: “I really like this company but I didn’t expect to make this much in such a short time. In fact, I would’ve been happy to make this much in a years’ time.”
I asked: “Did you sell it?”
He replied, “Nah, I’m holding on…at this pace I’ll probably make another 20%.”
Sound familiar?
This is a classic mistake.
What happens, too often, is you buy a stock and see an immediate increase in value. You then think it’s going to continue to go up and hold on to it too long. Eventually your profit disappears.
Then, you get mad when it continues to decline and refuse to sell it thinking it’s gonna “bounce back.”
You eventually get fed up and sell at a loss cursing your bad luck.
Don’t be Greedy
Later, you see the stock going back up and you curse yourself again.
So, rather than frustrate yourself, remember this: It’s never a profit (or a loss) until you take it.
If you forget this simple concept, I GUARANTEE YOU the market will eventually remind you of it.
Many investors are experiencing this with AI stocks as we speak. And many of them have seen a much greater return than 20%.
At the same time, many are also seeing their AI profits rapidly disappear as the Tech Sector continues its volatility.
So, remember; a 20% return is a great profit, even if you have to pay taxes on it.
The problem most investors face is not having the right mindset when it comes to taking profits or losses.
You don’t have to be smart to win against Wall Street. You just need to see how simple it can be.
We have over 116 years of combined experience to show you how to win.
Check it out HERE.
And while you are at it, see what stocks we are looking to buy at deeply discounted prices from their current lofty levels (HERE).
Share this with a friend…especially if they tend to complain about how their stocks perform when the markets get really crazy. They’ll thank YOU later.
And tell them:
We’re Not Just About Finance
But we use finance to give you hope.
“And you shall know the truth, and the truth shall make you free.”
