2 ms·
Noo, you should not hodl something forever just because you bought it and it's precious to you. The thing about investing and stock market in general is, that p
by tekkk 6y ago
Noo, you should not hodl something forever just because you bought it and it's precious to you. The thing about investing and stock market in general is, that people are constantly seeking the _best_ returns. If you have invested in something and it goes up by 10% in a year while a similar asset goes up 50%, you should probably re-evaluate your investment.
I have noticed that companies and investments do roughly divide into winners and losers. Meaning a currently well-performing asset will do well in the future. And a badly performing asset will probably suck still years to come.
One of the best things in investing i have done is selling my badly performing assets and buying some over-priced but well-performing assets. Sometimes the price is worth the hype.
- nly 6y agoYou're subscribing to trend-following strategy, which is your prerogative, but if your 50% return "similar asset" is really similar to something you already hold, then why didn't you hold it already as part of a diversified portfolio? If you had you would have shared some of the gain, whereas jumping ship you may find you missed the boat.
- tekkk 6y agoIf you are buying individual stocks, you can't really diversify your investments too much. I myself also enjoy the feeling of "getting it right" and only invest in companies that I absolutely believe in (and when that stops, I sell them). I don't hedge my bets by buying their competitors in the case they might do well too.
- 0_____0 6y agoJust have to be careful that you aren't thrashing around and exchanging investments to quickly. For one thing, the tax drag, and secondly, I've put money into a variety of things and then taken it out, only to see the stock triple in value (various EV, certain companies after IPO)
- bertjk 6y agoI've noticed the same, and I find it kind of amusing because it is basically the opposite of the common advice of periodically "rebalancing" your portfolio
- nly 6y agoNormally people talk about rebalancing in terms of asset classes, not individual stocks.