Investing: Be Smart Not Stubborn
I see it all the time. Investors who probably invested more than they could afford to lose, watch the share price of their favorite stock plummet. Instead of selling at a loss and investing their money elsewhere they stubbornly stay invested for months and years; convinced they will make millions. They typically blame everyone else for their losses because for whatever reason, they were completely innocent for buying shares in the first place.
The question of course, is what is the difference between being 'long' versus being stubborn and refusing to sell at a loss?
Its a very complex question with a relatively simple answer (in my opinion). Being 'long' in a stock is one thing. But when new DD indicates something may not be right, it is imperative to reevaluate, and possibly even sell at a loss.
I think this is where many investors get stuck. ABCD looks promising so an investor spends $10,000 on shares. All of a sudden news hits that something negative occurred inside the company and instead of researching and reevaluating (not necessarily selling), the investor buys even more shares because online investors tout 'GIFT PRICES'! Months later, even though the stock plummets, the investor refuses to sell.
Of course, as an example, I am invested in BSSP @ .0001 and zero bid, but with this investment, its simply a fun risk. I don't care if nothing happens and I didn't invest more than I can afford to lose.
So when does an investor know when to sell at a loss versus remaining 'long' because they 'know what they own' (we hear that silly saying all the time in these boards).
For myself, ill use BLTA as an example. Go check out the BLTA board. its insane over there. every comment has thumbs up from hopeful investors trying to convince themselves that they will eventually make back their money.
Although I'm not a professional investor, I knew to sell my BLTA shares a long time ago way before the price fell. In fact, many of those investors told me I made the wrong choice by selling because 'BLTA is going to the moon' (according to them).
So, how did I know to sell when everyone else was promising riches? Honestly, something just didn't seem right, so I sold, and took the money from BLTA and invested elsewhere and ended up making $10,000 profit. Could BLTA succeed? Sure. Will it? I highly doubt it. Why do I think this? Fundamentals.
Pretty much what works for me is I am willing to remain long only until I turn a predetermined profit. It really can be that simple. We hear of investors willing to remain invested 'forever'. Hey if that works, go for it. But I don't have forever. I want a profit as soon as practical.
Of course, I wish all investors luck in their investments. I hate reading investors saying they lost everything, but what it comes down to is figuring out why they lost everything. Did they speak with an investment professional PRIOR to investing? Did they listen to online investors rather than their own judgment? Did they invest MORE than they could afford to lose?
I said it in a previous post and Ill repeat it again; I believe the majority of investors will never turn a profit in the OTC due to stubbornness; stubbornness not to learn, stubbornness not to get professional help, stubbornness in not selling.
So, back to the original question: what is the difference between being 'long' versus being stubborn and refusing to sell?
For me, being long does not mean 'never selling'. As an example, I am long in SGLB yet have not owned shares of SGLB in over a year. I sold prior to the RS, knowing that eventually I would reinvest.
I think this is key. 'Long' does not have to mean 'stick with it no matter what'. Ever since the RS, SGLB has dropped from $6 to $2.50. I know I made the right choice for myself. Eventually I will reinvest and will have completely avoided the effects of the RS.
Realizing that we are being stubborn is the first step to understanding the difference between being 'long' and being 'stubborn'. Many investors refuse to admit stubbornness simply because they don't want to admit they lost money. 'Selling at a loss' is not an option to them because they refuse to associate themselves with 'loss'.
So to conclude this rambling post, if you're one of those investors who always loses money, never makes a profit, has never made $1,000 in a month, always 'sold too early', never got in 'before the run'.. you pretty much have two choices:
1. Keep doing what youre doing
or
2. Figure out what youre doing wrong
I'm convinced the majority of investors choose #1.
Not investment advice
I see it all the time. Investors who probably invested more than they could afford to lose, watch the share price of their favorite stock plummet. Instead of selling at a loss and investing their money elsewhere they stubbornly stay invested for months and years; convinced they will make millions. They typically blame everyone else for their losses because for whatever reason, they were completely innocent for buying shares in the first place.
The question of course, is what is the difference between being 'long' versus being stubborn and refusing to sell at a loss?
Its a very complex question with a relatively simple answer (in my opinion). Being 'long' in a stock is one thing. But when new DD indicates something may not be right, it is imperative to reevaluate, and possibly even sell at a loss.
I think this is where many investors get stuck. ABCD looks promising so an investor spends $10,000 on shares. All of a sudden news hits that something negative occurred inside the company and instead of researching and reevaluating (not necessarily selling), the investor buys even more shares because online investors tout 'GIFT PRICES'! Months later, even though the stock plummets, the investor refuses to sell.
Of course, as an example, I am invested in BSSP @ .0001 and zero bid, but with this investment, its simply a fun risk. I don't care if nothing happens and I didn't invest more than I can afford to lose.
So when does an investor know when to sell at a loss versus remaining 'long' because they 'know what they own' (we hear that silly saying all the time in these boards).
For myself, ill use BLTA as an example. Go check out the BLTA board. its insane over there. every comment has thumbs up from hopeful investors trying to convince themselves that they will eventually make back their money.
Although I'm not a professional investor, I knew to sell my BLTA shares a long time ago way before the price fell. In fact, many of those investors told me I made the wrong choice by selling because 'BLTA is going to the moon' (according to them).
So, how did I know to sell when everyone else was promising riches? Honestly, something just didn't seem right, so I sold, and took the money from BLTA and invested elsewhere and ended up making $10,000 profit. Could BLTA succeed? Sure. Will it? I highly doubt it. Why do I think this? Fundamentals.
Pretty much what works for me is I am willing to remain long only until I turn a predetermined profit. It really can be that simple. We hear of investors willing to remain invested 'forever'. Hey if that works, go for it. But I don't have forever. I want a profit as soon as practical.
Of course, I wish all investors luck in their investments. I hate reading investors saying they lost everything, but what it comes down to is figuring out why they lost everything. Did they speak with an investment professional PRIOR to investing? Did they listen to online investors rather than their own judgment? Did they invest MORE than they could afford to lose?
I said it in a previous post and Ill repeat it again; I believe the majority of investors will never turn a profit in the OTC due to stubbornness; stubbornness not to learn, stubbornness not to get professional help, stubbornness in not selling.
So, back to the original question: what is the difference between being 'long' versus being stubborn and refusing to sell?
For me, being long does not mean 'never selling'. As an example, I am long in SGLB yet have not owned shares of SGLB in over a year. I sold prior to the RS, knowing that eventually I would reinvest.
I think this is key. 'Long' does not have to mean 'stick with it no matter what'. Ever since the RS, SGLB has dropped from $6 to $2.50. I know I made the right choice for myself. Eventually I will reinvest and will have completely avoided the effects of the RS.
Realizing that we are being stubborn is the first step to understanding the difference between being 'long' and being 'stubborn'. Many investors refuse to admit stubbornness simply because they don't want to admit they lost money. 'Selling at a loss' is not an option to them because they refuse to associate themselves with 'loss'.
So to conclude this rambling post, if you're one of those investors who always loses money, never makes a profit, has never made $1,000 in a month, always 'sold too early', never got in 'before the run'.. you pretty much have two choices:
1. Keep doing what youre doing
or
2. Figure out what youre doing wrong
I'm convinced the majority of investors choose #1.
Not investment advice
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Disclaimer:
As used herein, the terms "You" and "Your" shall mean you, individually, the reader, and each other party on whose behalf you may use the contained information at any time.
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Do NOT invest unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.
There is a very high degree of risk involved in trading and investing. Past results are not indicative of future returns. I assume no responsibility for your trading and investment results. You should NOT rely on the information in the above post to make any decision or take any action.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are OPINION and NOT fact and are for entertainment purposes only. Do your own research and make your own decisions based on your own conclusions.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are NOT advice, and are NOT designed to substitute the expertise and judgment of a professional. It is your responsibility to seek investment advice during all stages of your investments. It is your responsibility to evaluate the accuracy, completeness and usefulness of the information in the above post.
I am NOT a professional.
I do NOT work for you.
My posts are NOT investment advice. I am not paid to post.
There is no correlation between the number of posts I write per day and your assumed success of a company.
It is NOT my responsibility to inform you of my own personal investment decisions.
It is NOT my responsibility to inform you when it is time for you to buy, hold, and/or sell a position.
I have no control over, and am not responsible for the actions of others who copy, store, edit, change, prepare any derivative work of or alter in any way any of the content provided in my posts.
Errors and Omissions expected. The writer of the above post accepts no liability or responsibility for any errors or omissions contained in the above post or contained within this Disclaimer.
The writer of the above post shall NOT accept any liability for the accuracy or completeness of the information contained in the above post, for any reliance placed by any person on the information contained in the above post, or for any damage or loss, however caused, in connection with the use or reliance on any information contained in the above post.
The above post may contain links to websites owned and operated by third parties. These links are provided for informational purposes only and are NOT endorsed by the writer of the above post. The writer of the above post has no control over the contents of any linked website and bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links.
YOU ACCESS ALL LINKS ENTIRELY AT YOUR OWN RISK.
The writer of the above post makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, or the information contained on these websites.
The writer of the above post accepts no liability for any damage or loss, however caused, in connection with the use of or reliance on any information, material, products, or services contained on or accessed through any such linked websites.
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
http://investorshangout.com/Joeys-Investment-Board-91611/
Invite Only
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
Disclaimer:
As used herein, the terms "You" and "Your" shall mean you, individually, the reader, and each other party on whose behalf you may use the contained information at any time.
All references to "My", "I", and “The writer of the above post” shall refer to the creator of the username Joey68.
Do NOT invest unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.
There is a very high degree of risk involved in trading and investing. Past results are not indicative of future returns. I assume no responsibility for your trading and investment results. You should NOT rely on the information in the above post to make any decision or take any action.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are OPINION and NOT fact and are for entertainment purposes only. Do your own research and make your own decisions based on your own conclusions.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are NOT advice, and are NOT designed to substitute the expertise and judgment of a professional. It is your responsibility to seek investment advice during all stages of your investments. It is your responsibility to evaluate the accuracy, completeness and usefulness of the information in the above post.
I am NOT a professional.
I do NOT work for you.
My posts are NOT investment advice. I am not paid to post.
There is no correlation between the number of posts I write per day and your assumed success of a company.
It is NOT my responsibility to inform you of my own personal investment decisions.
It is NOT my responsibility to inform you when it is time for you to buy, hold, and/or sell a position.
I have no control over, and am not responsible for the actions of others who copy, store, edit, change, prepare any derivative work of or alter in any way any of the content provided in my posts.
Errors and Omissions expected. The writer of the above post accepts no liability or responsibility for any errors or omissions contained in the above post or contained within this Disclaimer.
The writer of the above post shall NOT accept any liability for the accuracy or completeness of the information contained in the above post, for any reliance placed by any person on the information contained in the above post, or for any damage or loss, however caused, in connection with the use or reliance on any information contained in the above post.
The above post may contain links to websites owned and operated by third parties. These links are provided for informational purposes only and are NOT endorsed by the writer of the above post. The writer of the above post has no control over the contents of any linked website and bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links.
YOU ACCESS ALL LINKS ENTIRELY AT YOUR OWN RISK.
The writer of the above post makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, or the information contained on these websites.
The writer of the above post accepts no liability for any damage or loss, however caused, in connection with the use of or reliance on any information, material, products, or services contained on or accessed through any such linked websites.
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
