The public, as a whole, buys at the wrong time and sells…
“The public, as a whole, buys at the wrong time and sells at the wrong time. The average operator, when he sees two or three points profit, takes it; but, if a stock goes against him two or three points, he holds on waiting for the price to recover, with oftentimes, the result of seeing a loss of two or three points run into a loss of ten points.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Investors often sell winners quickly and hold losers too long, leading to larger losses due to emotional timing errors.
In simple terms: People sell gains early, keep losses, worsening outcomes.
Key Takeaway
Avoid emotional timing; stick to strategy.
Themes
investing
psychology
loss aversion
Mood
analytical
cautious
Type
practical
educational
When to use this quote
- stock trading
- portfolio rebalancing
- retirement planning
- day trading
Key Concepts
behavioral finance
risk management
Questions to Reflect On
- How can you enforce disciplined exits?
- What rules help limit loss holding?
A Different Perspective
Market volatility can still trigger emotional decisions.