Investment Buying and Selling Timing
Before thinking about entry and exit points, investors should first manage capital risk and keep enough living expenses in reserve.
【Investment Buying and Selling Timing】CLEC Investment Club
Written date: Dec. 15, 2018
Beyond buying and selling points, investors should first handle capital risk management. In general, the most conservative investors should keep three to four years of living expenses in reserve. More aggressive investors should at least keep one to two years of living expenses in cash or time deposits. The remaining idle capital can be used to buy indexes.
When is the best time to buy? The answer is: "Any time is a good time to buy."
When you have cash and the market happens to be falling, that is a gift from heaven.
When is the best time to sell? The answer is: "When you need money, or when you are doing tax planning."
Outside of those buying and selling points, the rest of the time is for waiting.
Market volatility cannot be predicted.
Even if technical analysis or market and economic analysis makes something feel profitable, after taxes are deducted, there is still no long-term profit.
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![Chapter 56 [Investment Philosophy] - Overcoming fear, anti-market, anti-human operations](/_next/image?url=%2Fimages%2Fblog%2Fjames-history-and-today%2Fen%2Fjames-history-and-today-0062-cover.png&w=3840&q=75 "Chapter 56 [Investment Philosophy] - Overcoming fear, anti-market, anti-human operations")
Chapter 56 [Investment Philosophy] - Overcoming fear, anti-market, anti-human operations
Investment must be in the opposite direction of the masses. When the general environment is favorable for the stock market to rise, a market fall is an opportunity and a good thing. The hardest thing about investing is overcoming the fear of falling markets. The mentality process of investors is as follows: When the market first rises and falls, investors don't feel it at all; when the market continues to fall, they think it is a long-term hold and don't worry! When the market continues to fall, think, ah! How can I sell it when it has fallen so much? I will lose money as soon as I sell it, so I decided not to sell it! 【Courage is great! 】 When the market decline intensifies, start to imagine the market
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