Best Profit is Cash Profit

So paper profits are just that, they are not realised profits. Naive to believe paper profits are real

MTR

 

Go to the bank with those paper profits and they might give you cold hard cash.

 

Bingo!

 

I do like actual profits - but those paper losses come in handy too

 

I take profit fairly often at least once a month and all those mega return have to locked it in real cold hard cash, gone up 10x times could fall back 5x or back to square cant be too greedy with the market.

Only sure thing is cash in the bank when things are hot and you have a lot of profit
do nothing and wait for when you get 50bn wipe off the market head lines and some poor soul got margin call and liquidate his position then you can come back for more

 

Equity is great, but today it could be $1M tomorrow it could $600K? dependent on the value of your asset, so we are at the mercy of market conditions.

MTR

 

I like all types of profits but the profits I like the most is one where I don't have to pay tax on which means it's capital growth .

I understand some people like cash making them feel good about cold hard cash sitting in bank account. But we all know cash is worst investment type over the long term hence once you have cash you need to go out looking for new investments to put it to work which takes effort and additional risk where you might end up with inferior investment to the one you already had. Not to mention you are working with 25%-30% less money once you factor in all the taxes and buying/selling costs that comes out of the profits.

So for me once I have found a good investment I like to hold on to it during thick and thin times because good investments always take care of themselves (providing good returns) given long enough time.

Cheers,
Oracle.

 

You could always have a bet each way, so you sell some down when you have made some profits, take the cash and reinvest this in whatever makes sense. You don't necessarily have to put it under the mattress... Better still have some fun with the cash, go on a holiday, live a little.... you cant take it with you as they say

MTR