WHEN TO SELL...it is the most difficult question asked by LAKHS OF investors TILL DATE AND NO ONE HAS found THE correct ANSWER....TRUE...but the answer is hidden somewhere and we need to find out...
YES...taxidrivers...your folks/nephews/relatives....your barber....your rakdiwalas....START PURCHASING STOCKS...THE IDIOT LOT....LAST LOT...it is when people are over confident and there is no other way FOR the stock market TO go... but up....it is when everybody agrees that new era has come...and THEY ALL COLLECTIVELY START givING a new definition to the current ONGOING bull trend....rate of return for the next 5 years from present....22% cagr FOR SURE.... AND IT WILL GO ON ENDLESSLY.....WHEN EVERYBODY WITHOUT OPPOSING AGREES ON SOMETHING THATS WHEN YOU HAVE GOT A PROBLEM....LONG MARKET because BOOM IS HERE TO STAY...ECONOMIC GROWTH IS BEST THAN IT WAS IN A LONG TIME....
At the top of the Euphoric economy the competition to put out money and the usual late-stage belief that “it’s different this time.” Lenders and investors invariably depart from time-honored disciplines when cycles move to extremes, out of a belief that current conditions are different from those that prevailed in the past, when those disciplines were appropriate. And just as invariably, they’re shown that cycles repeat and nothing really changes.
THE ABOVE REASONS ARE MORE THEN ENOUGH TO GIVE YOU A GUT FEELING WITHIN YOUR STOMACH THAT THE STOCK MARKETS ARE OVERPRICED AND ITS TIME TO GET OUT OF IT...
BUT WAIT EVEN AFTER KNOWING THE ABOVE REASONS THOROUGHLY AND EXPERIENCING ALL OF THEM AT THE TOP OF THE MARKET FORMATION... WILL YOU BE ABLE TO GET OUT OF THE MARKET...
HAHAHAA...ABSOLUTELY NOT...WHY???....THE REASON IS PSYCHOLOGY.....IT PLAYS A HAVOC ON OUR FRAGILE MIND AND MONEY IS THE BIGGEST ROOT CAUSE OF THAT PROBLEM...WHICH IN OTHER WORDS CAN ALSO BE DESCRIBE AS ""GREED"" ...YES GREED IS WHAT WILL NOT ALLOW US TO SELL AT THE TOP OF THE MARKET EVEN AFTER RECOGNIZING THE SEVERITY OF THE BULL TREND AND WHEN THE PROBABILITY OF THE STOCK MARKET GOING DOWN FROM THE TOP ARE 97/3....BUT STILL THE GREED FOR THE EXTRA 3% WILL SEE TO IT THAT WE LOSE ALL THAT WE HAD EARNED IN THE LAST 5 YEARS...
SO TO SAY IT IS VERY DIFFICULT TO CONTROL OUR EMOTIONS WHEN WE ARE IN THE BULL MARKET...MY SUGGESTION IS TO BUY IN GOOD FUNDAMENTAL BUSINESSES AND WHEN THERE IS BLOOD ON THE STREET....AND FEAR IS THE DOMINANT FACTOR....TODAY LITTLE FEAR IS THERE BUT NOT A DOMINANT FACTOR...ACTUALLY WE HAVE COME OUT OF THE DOMINANT FEAR FACTOR AND ENTERED THE OPTIMISM PHASE...WHICH WILL EVENTUALLY LEAD TO EUPHORIC STAGE....
HAPPY LONG TERM INVESTING.....
YES...taxidrivers...your folks/nephews/relatives....your barber....your rakdiwalas....START PURCHASING STOCKS...THE IDIOT LOT....LAST LOT...it is when people are over confident and there is no other way FOR the stock market TO go... but up....it is when everybody agrees that new era has come...and THEY ALL COLLECTIVELY START givING a new definition to the current ONGOING bull trend....rate of return for the next 5 years from present....22% cagr FOR SURE.... AND IT WILL GO ON ENDLESSLY.....WHEN EVERYBODY WITHOUT OPPOSING AGREES ON SOMETHING THATS WHEN YOU HAVE GOT A PROBLEM....LONG MARKET because BOOM IS HERE TO STAY...ECONOMIC GROWTH IS BEST THAN IT WAS IN A LONG TIME....
At the top of the Euphoric economy the competition to put out money and the usual late-stage belief that “it’s different this time.” Lenders and investors invariably depart from time-honored disciplines when cycles move to extremes, out of a belief that current conditions are different from those that prevailed in the past, when those disciplines were appropriate. And just as invariably, they’re shown that cycles repeat and nothing really changes.
THE ABOVE REASONS ARE MORE THEN ENOUGH TO GIVE YOU A GUT FEELING WITHIN YOUR STOMACH THAT THE STOCK MARKETS ARE OVERPRICED AND ITS TIME TO GET OUT OF IT...
BUT WAIT EVEN AFTER KNOWING THE ABOVE REASONS THOROUGHLY AND EXPERIENCING ALL OF THEM AT THE TOP OF THE MARKET FORMATION... WILL YOU BE ABLE TO GET OUT OF THE MARKET...
HAHAHAA...ABSOLUTELY NOT...WHY???....THE REASON IS PSYCHOLOGY.....IT PLAYS A HAVOC ON OUR FRAGILE MIND AND MONEY IS THE BIGGEST ROOT CAUSE OF THAT PROBLEM...WHICH IN OTHER WORDS CAN ALSO BE DESCRIBE AS ""GREED"" ...YES GREED IS WHAT WILL NOT ALLOW US TO SELL AT THE TOP OF THE MARKET EVEN AFTER RECOGNIZING THE SEVERITY OF THE BULL TREND AND WHEN THE PROBABILITY OF THE STOCK MARKET GOING DOWN FROM THE TOP ARE 97/3....BUT STILL THE GREED FOR THE EXTRA 3% WILL SEE TO IT THAT WE LOSE ALL THAT WE HAD EARNED IN THE LAST 5 YEARS...
SO TO SAY IT IS VERY DIFFICULT TO CONTROL OUR EMOTIONS WHEN WE ARE IN THE BULL MARKET...MY SUGGESTION IS TO BUY IN GOOD FUNDAMENTAL BUSINESSES AND WHEN THERE IS BLOOD ON THE STREET....AND FEAR IS THE DOMINANT FACTOR....TODAY LITTLE FEAR IS THERE BUT NOT A DOMINANT FACTOR...ACTUALLY WE HAVE COME OUT OF THE DOMINANT FEAR FACTOR AND ENTERED THE OPTIMISM PHASE...WHICH WILL EVENTUALLY LEAD TO EUPHORIC STAGE....
HAPPY LONG TERM INVESTING.....
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