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hey George,
Its all personal intrepretation...
I remember a few years ago talking to grandad about my winners and he told me that those profits are not real until they are taken..."until that money is in your hot little hand", he told me....
I did not take it to heart at the time... I was locked up in my own little world of thought... but I did remember what he said, and it all started to make sense as the positions I held started to fall after I sold them....
I was so caught up in how much paper profit I made, that it almost blurred my judgement on sell signals...
At that time I banked on profits that had not yet being taken...
In the end I did sell the shares, and then the stocks tumbled...
at that point I realised for the given level of risk that I take that yes I was foolish to believe that profits and losses are real before they are sold...
so in my experience, I wont bank profits or losses until positions are sold...
im weary after my rather lucky experiences with AED and NWE...and MEO...and others...
Now it would be taking it one step further to bank on returns not yet gained...
Its all about the individual... If you pursue a low risk portfolio strategy, then banking profits as they surface could be the way to go... higher liqduidity and smoother returns...
In this world of high risk, banking on profits, or losses not yet taken can be a detrement as those daily changes in dollar signs effect your emotions and blurr signals...
do what you got to do, I dont personally follow oher strategies, mine is evolving as I go...as I learn... and Im going to stand by my call because I believe in the fundamentals...
.^sc
BITCOIN certified rat poop. NSA created, Expensive to send, slow, can only trade on cex, no autonomy, spaghetti code, has been hacked, accidental Backdoor brc20s whoops, no one building on it, alienated all cryptos against it, volume is fake, few whales control large supply... it will perform though
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Incademy.com is an excellent investor education website.
One of their online "courses" is entitled "Fifteen Favourite Fallacies". It is well worth reading. You can find examples of each and every one of these 15 fallacies being advocated right here on ShareTrader.
"Paper losses aren't real" is number 10.
I'm with George.
http://www.incademy.com/training/Fif...on/1041/10002/
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Always learning
 Originally Posted by Phaedrus
Incademy.com is an excellent investor education website.
One of their online "courses" is entitled "Fifteen Favourite Fallacies". It is well worth reading. You can find examples of each and every one of these 15 fallacies being advocated right here on ShareTrader.
"Paper losses aren't real" is number 10.
I'm with George.
http://www.incademy.com/training/Fif...on/1041/10002/
That was a really healthy read, thanks Phaedrus.
It is only human to look for reliable rules and simple formulae to resolve an intellectual challenge. The investor's search for easy answers is manifested in a range of proverbs, sayings and mantras that have been given authority by the mere force of repetition. Together, these sayings are the nearest thing to a body of education that many investors ever receive. And they are all the more dangerous for that.
The sayings are seldom correct. Many of them are either completely misguided, or plain wrong, or right only in certain circumstances. Treat them with too much reverence, and you could be heading for a fall. Recognise them for what they are - simplistic part truths - and you stand a chance of emerging unscathed.
Never look a gift horse in the mouth? 
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hey phaedrus and others,
It does not matter to me, paper losses, real losses whatever which way you want to look at it...when you want to book it... in the end it only comes down to making REAL money... and I dont consider positions not sold REAL money.... ie... physical cash in the hand...
As long as im making money over the long term then im ok with that...
If I buy into a company for a reason then I will hold until that reason changes... its rather simple really...
I went 80% all in on NWE... had I continued to hold then I would have lost pretty much my shirt, and gruds...
The fact that I was almost blinded by the fact that I took heavy (paper) profits blurring my thoughts meant that booking paper profits could have cost me everything I had... So im not so excited about day to day changes to my wealth... im only interested on the target price to achieve, or material change to that target price (which means I dump on market, unattached, unemotional selling).....
thats just my opinion...
im happy with my way, I dont follow strict systems...
and I dont lose money over the long term...
mackdunk made 100% in 2007, and I beat him easy...
good luck to all...
dont be moulded into other systems... find your own system... and tinker with it...
peace
.^sc
Last edited by Crypto Crude; 06-02-2009 at 08:05 PM.
BITCOIN certified rat poop. NSA created, Expensive to send, slow, can only trade on cex, no autonomy, spaghetti code, has been hacked, accidental Backdoor brc20s whoops, no one building on it, alienated all cryptos against it, volume is fake, few whales control large supply... it will perform though
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