Last night I posted an excerpt from The 1938 book “Commonsense Speculation”. Another very relevant excerpt:
Never forget that all market profits are “paper” until collected. A $1000 or $100,000 paper profit can soon turn into a loss from mental lethargy or indecision.
Inasmuch as 99% of speculators trade on the bull side, get out somewhere while the going is good. For most people a bull market is like a trip in a elevator. Floor after floor is called out by the starter, but few emerge. Finally, to continue the metaphor, the elevator reaches the roof as the bull market is culminating. Then the machinery breaks, the car plunges to the bottom of the shaft, and the passengers – most of them badly injured – struggle to climb out of the wreckage that a bear market has brought.
Of course, it goes without saying that getting into a market, or getting out, requires a preset plan before you ever take the first step to speculate.