15H
I don't quite understand the economic logic behind "I'm taking my stake out." Could you please explain it to me?
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•@Epi I think it's more of a psychological thing, because you think, "Now I can't lose any more money."
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•15H
@Epi After all, he wrote: taking (partial) profits to build up a cash reserve. He simply calculated that amount based on his stake.
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•@Epi Psychological "security" clashes with economic rationality
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•@Epi Huh? He already explained it.
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•@Epi I'm buying an F and trying to figure it out—it's a trick question because it doesn't really make economic sense 🤔
Because you end up paying unnecessary taxes upfront, interrupt the compounding of interest, and let yourself be swayed by the disposition effect—assuming you still believe in the stock and hold onto it.
Because you end up paying unnecessary taxes upfront, interrupt the compounding of interest, and let yourself be swayed by the disposition effect—assuming you still believe in the stock and hold onto it.
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•@Epi 🤦🏻♂️
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