20 Reasons Why People Buy or Sell
Maybe not just 20 reasons but 20 weird reasons why people buy or sell.
But with many weird reasons resulting in millions and billions of profits everyday, it may be just wonderful to be weird.
#1 Re-activating an Inactive Trading Account
New brokerage or investment account? Have an inactive trading account? What do you do the moment you get the account running?
#2 Broker’s Recommendation
By direct broker’s recommendation or happen to spot an analyst’s forecast on TV or Newspaper? What do you do? You think about it. What’s next?
#3 Make a Quick Buck
Probably the top reason why you want to invest, especially when you don’t have much money or is in need of money.
#4 Listening to Rumours
Just came out of a private conference? Or Spotted the CEO of a listed company coming out from another company office? Heard something from an insider?
Do you or do you not?
#5 Trying their Luck
Would you get lucky today? Is good fortune smiling on you?
#6 Learn a New Investment Instrument
Buy a stock in a foreign country or emerging market? An ETF? Short Sell? Buy a Put or Call? Trade Index / Futures? Trade Interest Rate, FX, Gold … …
#7 Discover a New Investment Philosophy
Value Investing, Technical Analysis, Fibonacci, Algo Trading, Diversification, Modern Portfolio Theory, Contrarian … …
#8 Starting to Get Serious on Investment
Getting serious means to put in more money in investment. Remove (sell) the bad ones and buy more potentially good ones.
#9 Building a Portfolio
Great science. Many buys and sells.
#10 Having Extra Savings
Either the money flow into the bank account, spending it or naturally, think about investing.
#11 Extra Bonus
Bonus is extra money. It is frequently earmarked to fund extravagant lifestyle. Why not turn the spending into speculation and possibly, doubling the money?
#12 Betting for a Better Car / Holiday
Extra savings and bonuses doesn’t come easy. But what if you needed a little more money for a better car / holiday? Do you wait till the next year? It’s silly to go into a casino, so why not … …
#13 Doubling on a Gambling Loss
Made a big loss gambling? Or lost almost half your money in investments? What do you do next? Double up? Fortune favours the patience and risk-takers?
#14 Need the Money
Need money urgently? Instant access, instant rewards or instant disaster?
#15 Take Profit
Why shouldn’t you? What if it drops?
The advice ‘you never go broke taking a profit’ is foolish
~ Warren Buffett
#16 Happy with 5 or 10% Returns
Why take profit at 5% or 10%? Why not?
#17 Happy with 20% or 100% Returns
That’s huge. Why not take sell and lock in the profit?
#18 Been Holding it for 3 Years and Gain or Lost 80%
It’s been a long-time. It’s about time.
#19 Just Trading
Buy, then sell. Buy, then sell. It’s pretty cool to look like the next stock market wizard.
#20 Nothing to do
Definitely a weird reason. But if buying and selling makes you money, why not?