Wealth is not paper gains. Wealth isn’t even cash. Paper gains can rapidly become paper losses. And cash can lose its value too.
So how do you create wealth in the stock market? By maximizing profit and taking it so that you can stash your gains in assets that (hopefully) safeguard your wealth or provide for a life.
The bottom line is that buy and hold doesn’t work. There’s a time and a place to buy and that means there’s a time and a place to sell. You don’t buy when you don’t have a good reason to and you don’t hold when you’re given a good reason to sell.
Read the whole post here.
If we must label him, the writer is a contrarian, and one worth reading.
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