Buying and selling stocks. Which is easier?
This is a question I often ask my audience and the common answer was ‘buying’.
That means most find selling more difficult and I agree. But why so?
This is because at the point of selling you would already know if you have made a profit or a loss. Either way could land you in a dilemma.
If you are making a profit, you might be thinking to sell the stock so as not to lose the profits to the market. But on the other hand, the greed might tell you to hold longer for much bigger profits.
If you are making a loss, the first response is to hold as selling for a loss can be too psychologically painful. But you might also fear the loss can become bigger especially when the market sentiment is bearish.
Hence, a lot of such angel and devil dialogues can...