To The Moon

🌟🌟🌟Most people think that Buying a stock is the most important investment decision.  But what is more important is how to manage a profitable sale.

It would seem that there is nothing worse than selling a profitable stock and then watch the price continue to rally.  The bad feelings associated with regret that that I have sold too early can often be worse than making a loss.  That is because it is often accompanied by emotions that I have missed out on a better gain or that I could and should have done better.

However on the bright side, selling early if I  have made a profit should not be regarded as a disaster but a blessing. 

In fact it is rare to get all the profit that may be on offer.  

What is more  important in trading or investing is to have a plan with an exit strategy and with profit taking objectives.

I may opt to sell for a partial profit if the stock price has risen substantially - perhaps a third or half of a position.  Staying with a partial holding allows me to continue to benefit from a rising price.

It is also important to watch for a correction.  This can be managed by having stop loss levels that are raised if prices continue to rally. 

FOMO or Fear of Missing is common feeling when it comes to investing or trading.  I do not let it bother me too much as there are always plenty of opportunities in the markets to find winning stocks. 

Ultimately it is up to each person's goals and risk appetite.  Investing is very much a personal experience.  My goal is to find great companies whose stocks  selling below their intrinsic value and invest in them with a long term horizon. 

Investing is marathon, not a sprint.    As Warren Buffett likes to say "The stock market is a device for transferring money from the impatient to the patient." That means successful investing is about focusing on long term ownership and not reacting to short term fluctuations. 

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