How to Get Rich - Don't Fall in Love

Have you ever bought an investment with the intention of never selling it no matter what. ?

Do you think it is good for you to fall in love with an investment ?

The resounding correct answer to the above questions should be no !

Investing is Business


Yes, you have to look at investing as a business. You are doing it to make a profit and that is the bottom line.
No other investor out there cares if you make or lose money. They are in it for themselves and that is it.

You must look at each investment in terms of what it can do for you right now. This means that you must continually monitor the status of each of your investments. As prices and market conditions change, so too must your strategies with each investment.

This can generally mean taking profits from a good investment when the time is right and not looking back. It can also mean cutting short a loss on an investment that hasn't done as well as you had hoped.

In both cases above, take your cash and look for the next best opportunity as of right now. Don't look back and second guess your previous decisions. It doesn't matter any more.Right now is the time to focus on.

Investment Lifetime

Even the best of investments can come to a point where they can no longer provide you with the amount of income or potential growth to make them the most profitable choice for your portfolio. In this case, it is time to sell your position and move on to the next more profitable opportunity.

All good investments eventually come to a point where they have increased in value so much, they no longer become as profitable to hold onto. The mistake many investors make is to hold on too long, often some time after the investment peaks in value and starts to decline.

The length of time you hold an investment will be different for each investment. It will depend on your profitability analysis that you must conduct regularly. If another opportunity looks better than what you currently hold, then the time has come to say goodbye.

Rejoice in Your Success


You must be happy when you decide to take your profits and run. You must not worry about leaving some of the profits on the table so to speak. You will never be able to sell at the absolute peak of the market. Be satisfied with what you have made and move on. It will never do you any good to second guess your decisions.

Never fall in love with an investment to the point that it interferes with your business decisions. It will never be profitable, this I guarantee.

As always, I welcome your comments and suggestions for future topics.


Comments

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