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Last post you said "ten years" now you are cherry-picking start/finish points: From '03 to sell BEFORE the GFC. That isn't anything like apples with apples. And how did you know to sell in '07?say around 2003/2004 you could have picked up shares really cheap eg BHP for around $12, there's triple your money now, quadruple if you sold before the GFC.
With telstra you would have probally covered your capital loss from the dividends it paid. AMP was under $3 a share around that time. All the bank stocks, except for perhaps NAB, are up from 03/04, and any capital losses would have been made up from dividends paid.
Depends how you define "rich". If you sold before the GFC you certainly would have made a lot more $.
WOW was circa $12 10 years ago...hardly steady but not an exemplary growth rate either.
the way i see it, buy ten best stocks on ASX, hold for ten years (collecting dividends along the way) and then sell.
Whatever your strategy, the number one thing to implement in my humble view is the setting of stop losses & profit stops!
The biggest mistake traders make is they become greedy
Because we get carried away thinkng we're gonna make more and more but end up losing money and selling for a loss cause ythe price of the share went downWhy would you get out of a trade that is showing you profit? Because it is b etter than getting out when yuou are losing money - the point is to accumulate more money not lose money.
Why?
Because we get carried away thinkng we're gonna make more and more but end up losing money and selling for a loss cause ythe price of the share went down
Doing your reasearch first and working out what might actually happen rather than just sit on the shares hoping they continue / start doing what you want
Better off working out - I think AAA will go up 20% & therrfore selling at 20% profit, then holding on cause you hope it might go to 30% or 40% but drop 50% instead and you end up losing your money.
Of course, sometimes gambling is fun and we all know stories of gambler's luck, but wehne I'm dealing with money I dont want to lose, I prefer to take a more strucutred approach.
I understand what you are saying but if something is going up I don’t want to sell, I want as many as I get
Personally I think profit target are more of a reflection of the trader/investor in so much that they would rather ‘not lose’ than 'win'.
I understand what you are saying but if something is going up I don’t want to sell, I want as many as I get
Personally I think profit target are more of a reflection of the trader/investor in so much that they would rather ‘not lose’ than 'win'.
I thought we were talking investment, not the ladies' knitting circle share club.Part of the problem also appears to be buying such low amounts of stock (eg $1k worth) and not being able to be satisfiied with small %qge increase like say 5% in a week or so, cause your buy & sell costs take away most of the profit...
The intention is not to lose, but by cutting winners your overriding driver is to avoid losing money. There is nothing wrong with this view, however cutting winners will greatly reduce the profits of an account.OIf we would rahter win not lose - what would be the point of lsoing ?
+1 to everything Jaycee said.
Also profit stops doesnt necessarily mean having to sell at the relevant profit point. Rather it can be to rethink the position in line with your strategy ( ie why has it gone up so much? Is there anything behind it? is the run running out of steam? whats the wider market doing? etc). You could decide to reset your stops at higher levels to protect some profit in case there is a reversal.
I bought $13k of a stock in '04. At it's peak (pre GFC) it was worth nearly $300k. At it's trough it was back to $200k but is rising again. How smug would I have felt selling it @ $20K?
I thought we were talking investment, not the ladies' knitting circle share club.