Investment impatience destroys wealth in every market while patient investors learn to build wealth on rising and dividend paying stocks. Investors riding winners, sell the losers and enjoy the dividends. The best investors do not act in anticipation but wait to deal with facts. That investing attitude avoids reacting to rumors and fear.
Should investors sell to take profits?
Choices To Make Money Work course 215 lesson 7, answers the question, should investors sell to take profits? Links at the end guide you to related content if you want to learn more.
What you learn:
Don’t rush to take profits, rather be a patient investor. That consistently makes more money and avoids many stock market risks and gambles. Knowing this important fact gives you one way to become a money making superior investor. By riding winners and selling losers while enjoying dividends, investors win. They wait and deal with facts as a core investing attitude. Knowing how investors can consistently win gives you one important way superior investors act.
Doing nothing can be your best choice
When riding a winning stock, doing nothing is the easiest way to make money. Early selling zaps potential wealth that could be yours. Wealthy investors got that way by being patient. You can too. Buy winning dividend payers and let those dividends and rising stock values add to your wealth.
Getting rich or avoiding going broke?
“You never go broke taking profits!” That old adage often gets used to justify selling a winning position. True, selling locks in profit. However, you don’t grow rich taking early profits!
That is the point here. Following the tired old adage will get you profits now but robs you of any possible future gains. To get rich, stay with your winners. Take the full ride to wealth.
Be aware of impatience dangers
Impatience can destroy wealth. Far too frequently I have seen people sell winners while holding onto poor or losing positions and, worst, buying more of their under performing losers to average down or “re-balance”! That is backwards! Sell the losers and ride or add to the winning positions!
Impatience is dangerous to your wealth
The talking heads on TV, too many advisers that “churn to earn” and traders want you to take profits on your winners. That works to put your money into their pockets.
Don’t trade when you should not. Do not sell a winner.
Traders and their facilitators generate most of the very high noise level in markets. They also generate the majority of the revenue for the brokerage houses and exchange. In their worldview all trading is good. It certainly is good for them but could seriously slow the growth of both your portfolio and climb to wealth.
Profitable trades can cost you opportunity
Trading does work well for traders. It also works for those who serve them. Here, we are talking about investing, not trading. When you are investing, any trade taken when you should not, costs you unnecessary fees and all the potential future profit of that position.
The market and people around it can be noisy. All that market racket can make you think I must do something. Naturally, if you ask a trader what to do, “trade” will be the answer.
Adopt this basic thinking guideline: sell positions that show a loss, keep positions that show a profit.
This is not suggesting that you should never trade, hesitate to trade or resist any suggestion to trade. Just make sure that it is in your best interest before you proceed with any trade. When appropriate do not hesitate to make a move. But with your rising winners selling is not appropriate.
Nothing else will improve your investment performance like this simple, easy and very profitable move. Or should I say non-move?
Investing winners ride the road to wealth
When it comes to managing your rising winning positions the very best thing for you to do is nothing. To grow wealthy you need to do nothing but enjoy the ride on winners.
Think this way; the market does not and can not beat you, however you can beat yourself. Develop the knowledge, think it through, act when needed and be patient with your winners.
Big money is not made by trading. It can be made by riding winners higher. Find, buy and ride those winners! And always remember the investment danger impatience zaps wealth.
Should investors sell to take profits? Answered!
Knowing the advantage of investor patience lets you avoid falling into the “beating the market” or “selling early” traps. Patient investors consistently make more money and avoid many stock market risks and gambles. Superior investors ride winners and sell losers while collecting dividends. They deal with facts and avoid rumors or market fears. Follow their example to enjoy the benefits of being a superior investor.
Lesson takeaways,
Investment impatience destroys wealth:
Investment impatience destroys wealth in every market while patient investors learn to build wealth on rising and dividend paying stocks. Investors riding winners, sell the losers and enjoy the dividends. The best investors do not act in anticipation but wait to deal with facts. That investing attitude avoids reacting to rumors and fear.
- Investors ride winners.
- Superior investors sell losers.
- Investors enjoy collecting dividends.
- To win, avoid stock market risks and gambles.
- Doing nothing can be your best investment choice.
- Don’t just avoid going broke, invest with patience to build wealth.
- Choose to become a money making superior investor.
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Comments and questions welcome
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Course 215 lessons,
Choices To Make Money Work:
Key investing success choices Lesson 215.01
Join exceptional wealth builders Lesson 215.02
Investing time or adviser time? Lesson 215.03
Small investors have advantages Lesson 215.04
4 Successful investor traits Lesson 215.05
Avoid 6 investing sins Lesson 215.06
Investment impatience destroys wealth Lesson 215.07
3 Yeses or no investment Lesson 215.08
Investing can be fun, interesting and slow Lesson 215.09
Warren Buffett explains gold Lesson 215.10
Next course 215 lesson 08:
3 Yeses or no investment
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