Life tip: Of wealth

You will thank me for this one tip.... We only make money when we sell.

Too much bullshit on this forum about strong hands and not selling.

 

Fair call, on the other side of the coin "You only lose money when you sell".

 

wrong place...

 

Thats completely debatable.
Technically your correct but it may not be the most financially prudent course of action for many reasons.Therein Oz coppers timing comment is Golden.

 

Too early to sell silver and gold. We've not seen extreme fear yet. The fear level in 2008-2009 was much higher than in March. Next year maybe?

Anyway, I'm thinking of taking profit on some of my stocks after the recent run up. Let's see where it will go next 1 week. Sometimes, 80% of the gains happen in the last 1 week before the plunge.

 

OP is correct, the only way to realise a profit is to sell. Timing as Oz suggests is the essence.

Share a jewel with you all, was given to me as a teen by an old man in western QLD. Self made millionaire in footy shorts and a beat up cricket hat. Take some time and let it sink in .....
“Always remember boy, you make your money when you buy - not when you sell”

 

Actually, this is right. Buying is more important than selling. Buy cheap...that is.

Warren Buffett has similar advice to buy and never to sell, although, it's easier said than done and definitely doesn't apply to virtual stuff.

 

There may be some truth in saying that, but I live by the motto that we make real wealth when we accumulate and hold precious metals for
the long term, not just for short term profit and gain.

Money and wealth can sometimes be two totally different things, as anyone who has lived in a country that has experienced hyper inflation
could tell you.

I also don't like to dwell too much on the total monetary value of my holdings, rather the ounces and kilos ( It helps keep me sane during the
almost constant crashes that the evil cartels engages in on a regular basis )

And while I do sell some metals on a regular basis, all those fiat proceeds go towards purchasing more desirable gold items that can or could be resold
for a higher price than the ones I have just sold.

Hope this makes a bit of sense to somebody.

 

Perfect sense.

 

Of course everyone has a view and maybe I should have expressed myself better.....

For some who have read my posts in various threads be it gold, bitcoin, stocks or property, a common theme is I am equally vocal when I think it is a time to buy, hold or sell on everything.

It would be great to buy the bottom and sell at the top everytime, an impossibility over time but easier than hoping prices are high when I sell at the end.

I am a firm believer that reading the momentum and catching 30% of 50% drop and riding up 30% of 50% rise is "easier" and can be done.

Easy things like when BTC was $5,000 you know it will go up and come back down again, with FOMO driving people to buy @ $20,000 lol or over 6 week period in February March stock dropped 50% not doing anything and hodling.

 

Agree with the bullshit about "strong hands" - that is merely members justifying a shit investment decision to themselves.... it is a big wank that says " I am right, even when I am wrong....".... humans can't stand to admit when they are wrong.

Regarding only making money when we sell.... well, I believe that is debateable. Yes, we only make money/cash when we sell, but the value has already been determined. This also applies to "we only lose money when we sell..." techinically true, but realistically a load of BS to make one feel better about a shitty investment decision. In reality, the value has already been attributed by the market weather selling, or buying.... so I disagree with this one.

 

Listen to the words of old man Lindsay Farington,
“you make your money when you buy - not when you sell”
To sell is to realise a profit which gives the opportunity invest said profit in some other undervalued item or asset with potential to grow.

 

I reckon if you see a good investment that is at a good price (not an imaginary good price) then you got step up and buy it if you are in a position to do so. Don't listen to noise and know within yourself that if you don't do it that it may quite well be detrimental to your wealth. So buying at the right price is very important.

Once you have this asset and there are decent gains on paper then you probably need to think about selling. There is no point buying a kilo of silver at $1,000 and then not selling it for $2,000 if the situation arises. Take the money of the table, put it aside and rebuy it when the price drops. We started the year with silver at at $25 per oz, it ran all the way up to $40 an oz, now it's back down to $33. You could have sold at $40 and rebought at $30. This can be applied to real estate as well as shares. Am I buying shares right now? I don't think so, wrong price, way too high but I am buying bits and pieces of gold and silver.

 

^^ precise and as @Ipv6Ready points out to time exact tops or bottoms is a random walk

 

Imagine in a perfect world where market manipulation didnt exist anywhere.
Some people laughing all the way to the bank would be shitting themselves right now and some people shitting themselves would be laughing all the way to the bank.
You would also have a complete rehash of the current list of financial experts.
And i would be behove to cull over 80% of the commentary on Gold which i personaly find asinine and a complete recycling of the same information year after year after year after year after year........

 

timing is everything, and "nobody ever lost money taking a profit".

 

I trade cryptos and shares but never metals.
I only trade what I dont see as real long term investment and I find all that in the markets.
Sure theres $$ to be made but stocks are no investment that I would stay in for the long term.
Eventually it will all come down and I will still have my metals.

They may be able to print to the moon but they cant print confidence.

Gold has had a saying for 6000 years.
If it ain't broke dont fix it.

 

I trade cryptos and shares but never metals.
I only trade what I dont see as real long term investment and I find all that in the markets.
Sure theres $$ to be made but stocks are no investment that I would stay in for the long term.
Eventually it will all come down and I will still have my metals.

They may be able to print to the moon but they cant print confidence.

Gold has had a saying for 6000 years.
If it ain't broke dont fix it.

 

A sign on a Melbourne CBD had me thinking yesterday:

"Intergenerational Wealth Opportunity"

https://www.realestate.com.au/news/...andmark-for-sale-with-50m-price-expectations/

Our family had wealth 4 generations ago, but bad management and bad luck boiled down to an inheritance at my generation equivalent of a cheap second-hand car.

Changes the perspective. Nonrecourse used to post here a out how to create intergenerational wealth, and "sell" is a rarely used word in some classes.

 

In my experience, in the 70s one parent worked to sufficiently afford a modest home & good lifestyle with reasonably abundant free time.
That was destroyed within 1 or 2 generations for the average Australian family. It can still be achieved, just don't expect to see much of your spouse & family.