Average Quote by Charles Dow
“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
Source Book: The History of the Stock Market (1901)
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.
