558. The Purpose of Trading is Profit

When trading, remember that the purpose is profit. It is always better, therefore, to lose the opportunity than the money.

551. When Should I Sell ?

Sometimes, you hold a profitable investment and wonder whether or not to sell it. Do not be in any doubt. If you are asking the question at all then you should sell. Nobody ever went broke by taking a profit. As part of your financial plan, you should already know your selling price and if the investment has reached it then you should sell and move on. Remember that your profit is made on the day you buy not the day you sell.

477. Losing Money

Every time you lose money, you destabilise your financial position. Never deliberately make a loss just so you can take a tax break. It is ALWAYS better to make a profit and pay the tax if you must. Better still, make the profit and avoid,(not evade), avoid the tax.

There is a distinction between tax avoidance and tax evasion. Tax avoidance is LEGAL, evasion is illegal. This distinction can keep you out of jail.

365. The Magic of Thinking Big

Always go for he biggest and the best. When constructing a financial plan, for instance, make one for the whole of your life, not just for a year. Indeed you should have a plan for 1, 5, 10, 20, 40 and 50 years hence. Commit yourself to the long term goal of being fnancially free. Set and achieve goals for your income, expenditure, profit and asset acquisition. Think in terms of your whole life and beyond that to your children and grandchildren's lifetimes.