RE: Bounce from here to 5p. Next news must be close.20 Sep 2024 09:50
"The question is why would you keep holding if you think the SP is going back to the placing price? That doesn't make any sense. Sell now and buy back at the placing price if you think that's where it is heading???"
It sounds so easy and it is! The only way to make money in investment is to buy AND sell. When you buy, you've convinced yourself your investment will turn a profit. When selling there are two circumstances, paper profit and paper loss
1) Paper profit - you've convinced yourself that the risk of being patient and waiting for any more profit is too high so you turn your paper profit into true profit by selling
2) Paper loss - you've convinced yourself that your initial buy was a mistake and you want to stop the loss.
It's the "convincing yourself" is the tricky bit. If you havent sold you havent truly convinced yourself that selling is the best option, its heart vs head really. Derampers who hold are torn. Their head says SELL (hence the deramping posts), yet their heart (or even ego) says HOLD because their investment is ethical with potentially large returns (or they just refuse to admit to themselves they were wrong).
The most successful investors don't think with their heart and those that do just get lucky.