Money is made by sitting
"Money is made by sitting" - Jesse Livermore
You can make money in 2 ways , buy good stuff and sit tight or keep a cash position and wait for a crisis. I am better at doing the first. I am making a lot of money just sitting in good graphs that move from left to upper right. In 2011 there was a big crisis in Portugal , IMF came in and everything was on sale. My brother called my attention for some property that was for sale in the prime location in Lisbon , in Rossio like Piccadilly or Union Square in NY , It's not Times square it's an historic place in the tourist center. Well I wasn't aggressive enough bidding for this 4, 1 bedroom apartments (totally new) and I miss it. At the time I was happy because I bid but I didn't get them (someone was more aggressive) and my business was never real estate. Looking back each one would be worth now the price of the 4 of them.
Going back to what I do, I buy good stuff and if it's making money I try to sit like Jesse Livermore says. Every time I sell because it's too high it's a mistake. When I am losing I exit fast.
Looking at the graph below still a lot of people on the sidelines. The market can go further yes it's possible that we can go to 4000 on the S&P. Next year when reality sets in possible it's another story.
For now sit tight.
In march 12 2020 not quite in the bottom of the COVID crash my advice was There are not many panics when you see one use it. It was a good advice I should do more what I write on this blog.
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