1Lun
Nobody has died of profit-taking yet, but nobody has died rich either. 😅
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@Epi well, i don't think my action is stupid. if that's what you mean
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@Epi Tell that to Charlie Munger's heirs😅
Book profits are not profits, especially buy and hold investors should remember that.
Book profits are not profits, especially buy and hold investors should remember that.
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•1Lun
@TomTurboInvest Why are BuchGEWINNE not profits? They're already called that...
With dividends, you will definitely notice the rise in share prices, just ask Charlie Munger!
With dividends, you will definitely notice the rise in share prices, just ask Charlie Munger!
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•@Epi unfortunately I can no longer ask Charlie 😢
And before we confuse new readers with the satire "...are called that...", here is the explanation.
If you own shares that have risen in value, you have a book profit. However, this book profit is only theoretical as long as you do not sell the share. A book profit can quickly disappear again if the market value falls.
If you now sell the above-mentioned share and make a profit, this profit is realized and is actually available.
Characteristics of realized profit: Fixed and no longer affected by market fluctuations.
Of course, this does not mean that you cannot enjoy book profits, but you must be aware that they can disappear very quickly.
...and unfortunately you can't buy anything with book profits.
And before we confuse new readers with the satire "...are called that...", here is the explanation.
If you own shares that have risen in value, you have a book profit. However, this book profit is only theoretical as long as you do not sell the share. A book profit can quickly disappear again if the market value falls.
If you now sell the above-mentioned share and make a profit, this profit is realized and is actually available.
Characteristics of realized profit: Fixed and no longer affected by market fluctuations.
Of course, this does not mean that you cannot enjoy book profits, but you must be aware that they can disappear very quickly.
...and unfortunately you can't buy anything with book profits.
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•1Lun
@TomTurboInvest Technically, of course, you're right.
However, I would put two points into perspective:
1. if you sell a share at a book profit, you initially only have cash or overnight money in your account, basically a new asset class (UltraShort Bonds) that is only less volatile. You can only really enjoy them after a further exchange for services or goods. And, at least in theory, this exchange can also be made directly from shares into services, e.g. via securities lending.
2. if I take an SL in a share in book profit, then that is my actual profit. It can no longer be taken away from me. It is somewhat different and lower than a book profit, but directly dependent on it.
However, I would put two points into perspective:
1. if you sell a share at a book profit, you initially only have cash or overnight money in your account, basically a new asset class (UltraShort Bonds) that is only less volatile. You can only really enjoy them after a further exchange for services or goods. And, at least in theory, this exchange can also be made directly from shares into services, e.g. via securities lending.
2. if I take an SL in a share in book profit, then that is my actual profit. It can no longer be taken away from me. It is somewhat different and lower than a book profit, but directly dependent on it.
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•@Epi is, as always, a matter of opinion, in the end everyone has to do it the way they like it anyway.
PS: as an active long-time user of SL or TrailingSL, I can say yes - with a good probability I can secure the book profit around the SL level. But, of course, I have also experienced the downside of SL first-hand often enough. I'm just talking about post-trade events and a big opening gap... 😭
Unfortunately, dips of more than 25% are no longer a rarity these days
PS: as an active long-time user of SL or TrailingSL, I can say yes - with a good probability I can secure the book profit around the SL level. But, of course, I have also experienced the downside of SL first-hand often enough. I'm just talking about post-trade events and a big opening gap... 😭
Unfortunately, dips of more than 25% are no longer a rarity these days
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•@TomTurboInvest would you currently go in with visa or wait
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@Memo0606 I have never taken a closer look at Visa. But after a quick look at the chart, I would wait and see if the 200 GLD holds. Well, and regarding the company news with the preparation for the lawsuit because of the monopoly position, one doesn't really know what effect this could have on the share price...
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