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Ex-Global Head of FX Merril Lynch Quote
Topic Started: 2 Jan 2017, 04:53 PM (3,419 Views)
Terry
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Good food for thought compared to the BBQ banter:

Most people take their profits too early and cut their losses too late.

If they buy a house for $500,000 and a month later somebody offers them $600,000, it is human nature to take the money and dine out on their good fortune. Conversely, if they put that $500,000 house on the market and the best offer it brought was $350,000, they would hold onto it.

A good dealer would not. As soon as he realised the asset was losing value he would get what he could for it and put the money into a new, hopefully better, investment.
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Simon_S
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Terry
2 Jan 2017, 04:53 PM


Most people take their profits too early and cut their losses too late.


A good dealer would not. As soon as he realised the asset was losing value he would get what he could for it and put the money into a new, hopefully better, investment.


He was probably a Trader in a past life so therefore understands Risk and Stop Loss strategies.

They would need to understand what Profits are in the First Place.

Until you have actually sold then you do not actually have a profit. It is simply Theoretical.

Asking a Home Owner/Property Investor to understand what a stop loss is goes against the very nature of what property investing is.

No different to long only Investors.


Edited by Simon_S, 2 Jan 2017, 05:14 PM.
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Trollie
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Simon_S
2 Jan 2017, 05:11 PM

Until you have actually sold then you do not actually have a profit. It is simply Theoretical.
The definition of profit is financial gain. Nothing to do with selling kemosahbee.
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Terry
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Simon_S
2 Jan 2017, 05:11 PM


He was probably a Trader in a past life so therefore understands Risk and Stop Loss strategies.

They would need to understand what Profits are in the First Place.

Until you have actually sold then you do not actually have a profit. It is simply Theoretical.

Asking a Home Owner/Property Investor to understand what a stop loss is goes against the very nature of what property investing is.

No different to long only Investors.

Yes, you understand well. They also understand the following:

-- Understanding how asset markets that work within parameters is crucial to understanding how to optimize opportunities. Asset markets that work within perpetual directional motions are fundamentally flawed and create broken belief systems.

-- The ideas of stop loss and risk management are basics to traders. With suburbanites, they don't exist on the whole, That is no fault of their own. They have been indoctrinated to believe and act in ways that are self-serving to the people propagating those doctrines.
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Simon_S
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Trollie
2 Jan 2017, 05:48 PM
The definition of profit is financial gain. Nothing to do with selling kemosahbee.
So that money is in your bank account to spend.......

That's right its "Theoretical" money.....

So if house prices fall you still have that Profit? No?

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Trollie
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Simon_S
2 Jan 2017, 06:06 PM
So that money is in your bank account to spend.......

That's right its "Theoretical" money.....

So if house prices fall you still have that Profit? No?
Money in the bank isn't profit, it's a loss due to inflation. It's not a financial gain.

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Jimbo
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Trollie
2 Jan 2017, 05:48 PM
The definition of profit is financial gain. Nothing to do with selling kemosahbee.
You don't know whether you have made a financial gain or loss until you sell.

Basic stuff dolly. Do try to keep up.




Trollie
2 Jan 2017, 07:27 PM
Money in the bank isn't profit, it's a loss due to inflation. It's not a financial gain.
If I sell something today for a profit and put the money straight in the bank, how much have I lost due to inflation at exactly the moment I deposit the money?

idiot.
Terry
2 Jan 2017, 04:53 PM
A good dealer would not. As soon as he realised the asset was losing value he would get what he could for it and put the money into a new, hopefully better, investment.[/i]
Way too simplistic.

It depends on why the asset fell in monetary value and the investors belief in whether the asset is likely to recover or not.

Also, costs of trading have to be taken into consideration.

Edited by Jimbo, 2 Jan 2017, 08:03 PM.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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herbie
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I don't wanna trade shit - I just wanna own debt free houses - So's I can rent 'em ta people like Jimbo wot do wanna trade shit - 'N thus have him hate me as a member of tha parasitical landlord class - LOL
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Terry
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Jimbo
2 Jan 2017, 07:54 PM

Way too simplistic.

It depends on why the asset fell in monetary value and the investors belief in whether the asset is likely to recover or not.

Also, costs of trading have to be taken into consideration.
Yes, simplistic. Monetary value does apply to trading too by the way.
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herbie
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Anyways, can someone remind me agin how come tradin' shit is 'productive'? - Tha story goes ya providin' much needed 'n really useful feedback on tha 'true value' of tha market or some such aren't yas? - LOL LOL LOL
Edited by herbie, 2 Jan 2017, 08:32 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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