Do you want to make a profit on the stock exchange? Kill hope
Above the gateway exchange (if they only have) it would be necessary to write: “Abandon all hope, ye who enter here …” Because as long as you hope, you will lose. Cherishing the hope you’ll stay for the bad assets, giving them a second, a third chance, and delay in order to sell them. Why is this happening? Because all (and I – is no exception) love to buy stocks, but nobody likes to sell them at a loss.
After all sell the shares at a loss it is to accept defeat and lose the rest of hope. It seems: yet there is a paper there is hope (that she will grow up and will at least recover his). But this is a trap of the ego. The loss does not cease to be a loss due to the fact that we do not want to recognize it.
However, what happens when you give up all hope and sell? You become a realistic and come to terms with the fact that the market should be able to lose. However, there is good news, and it lies in the fact that the source of the problem – not a loss, but not the ability to manage it. And let two stories from the book by William J.. O’Neill this will convince you. I quote them below as it is.
“Many years ago I heard from Fred C. Kelly, author of” Why did you win or lose, “the story perfectly illustrates how an ordinary investor says, when it comes time to decide on the sale of securities.
Little boy swerved off the road when he saw the old man, lovivshego wild turkeys. The old man was a trap – a rough device, consisting of a large box with a raised door. This door is maintained in the open position a prop, which was tied to the string of a hundred feet long, and even more. Corn, scattered along the path, had to lure turkeys in a box.
Once inside, turkeys are there more corn. When inside the box was sufficient turkeys, old man pulled the twine, pulling the backup, and the door slammed shut. Slamming the door, he could not open it, not going to the mailbox, and it scares the turkeys that were outside. Therefore it is necessary to pull out the backup was when the inside turned out as many turkeys.
Finally in the box he plucked a dozen turkeys. Then one of them went out, leaving eleven. “Gosh, I wish I had not pulled the string when there were twelve, – said the old man. Wait a minute, maybe it will come back. ” While he waited, he would return twelfth turkey, there were two more. “We had to stop at eleven – catcher said. – Well, nothing, only one will return, and I pull the rope. “
Came three more, but the old man was waiting for it. After all, he had twelve turkeys, and now he did not want to go home with less than eight. He could not believe that at least one turkey will not be back in the drawer. When in the end only one turkey remained trapped, he said, “I’ll wait until it vyylet or go in and go.” Last turkey joined the others, and the old man returned home empty-handed.
typical investor thinking is not much different from the above-described history. He hopes that some turkeys back into the box, while should be afraid that the rest run away, and he left with nothing.
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