We as humans are naturally greedy and for everything we want more. "The more the merrier" as many people say. When a stock is rising (especially in a bull run), you feel good about the stock and this heavenly feeling and optimism is percolating. Even if your original target price on the stock is reached, it is natural to not sell and look for bigger profit. Along with greed is the thought process of why end something when the going is good; why not ride the train and see where it takes us. A friend once asks me this question: "Assuming you buy a stock at S$0.95 and then sell the ......
Hi,
A very thought provoking post! Which is harder?
If you have discipline and a strategy, it is simple. Follow the strategy to take profit OR to cut loss when it breaks your support level. Either way
1. you realize your profit OR
2. avoid a potential bigger lost.
In the end, you would have mastered discipline and strategy. This is one of the key to sucessful investing.
On the other hand, if you do not intend to follow your strategy or have a discipline to cut loss, you might see a potential higher gain or experience a bigger loss. The more important point is where is your strategy or discipline?
Hence, time will be the judge again BUT is having a well define strategy and discipline to execute your startegy important? You be the judge?