It’s OK to Leave Some Money On the Table

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I am not talking about the tips in the restaurants; I am talking about the stocks going up after we sell them, doesn’t that happen all the time? Just like it goes down after we bought it? My most recent example is New Oriental (EDU, it seems to me the traders did not take too much time off for the Lunar New Year). And it happened to my friends in China too. The friend was very upset when he told me the story. It seems to us sometimes “not making all the money” feels worse than “losing money”. For instance, if a stock falls after we bought it and we sold it because it never went back the level is was, i.e., we were “under water” the whole time, we may not feel that bad. But on the other hand, if it went up big and we missed the potential big profit, we will feel mad at us 🙂

So what do we do? We chase them, we bought it back. Then what happens? It drops (did I tell you the stock usually drops after we buy?). Then what…you know the story.

The bottom line for me is, as long as I make money, I will be happy. We need to let somebody else make some money too, right? By the way, it’s important to leave money on the restaurant table too, because if you don’t, next time you will not be welcomed.

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