Wanting too much can lead to trouble.
Famous investors around the world are smart and don't get too greedy. They often stop investing after making a bit of profit. But ordinary people start wanting more when they begin to make money. This happens because of baseless hopes. Wanting too much usually ends in losing money. So, it's important to think about how to invest wisely.
The Pythagorean cup is also known as the "Cup of Justice."
The Pythagorean cup is a clever cup invented a long time ago. It looks like a normal cup but has a secret trick. If you fill it too much, it spills all the drink out from the bottom. It was made to teach people not to be greedy. If you pour just the right amount, you can drink with no problem. But if you get greedy and pour too much, you end up with an empty cup! It's like a fun lesson about being careful and not taking too much.Investors usually have their own expected rate of return. However, those who don't set a target profit rate might hesitate to sell when stock prices rise sharply. Even those who do set a target may delay selling if the price doesn't reach their goal, potentially tying up their funds for a long time. While target profit rates are subjectively set by investors, setting them too high can lead to significant risks.
Therefore, it's wiser to consider selling at 60% of the target profit rate. This strategy allows for stable earnings and the chance to find better investment opportunities. While one might luckily achieve higher returns, it's crucial to remember that investing without principles often leads to substantial losses.
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