My wife and I decided to sell our house this past week. We have decided to downsize as we both have our eyes on retirement for my wife and semi-retirement for me. This is the next logical step to eliminate debt, reduce household expenses and simplify our lives. But selling a home comes with plenty of work like doing 101 minor house repairs, purging, and cleaning. When you are finally ready to list, the question is, what is your asking price?
When it comes to selling your home, everyone thinks that their home is special and is worth a million dollars, but the reality is that if you do not get that million-dollar offer, your house is not worth that in the marketplace. Economics is a cruel science, and life is not fair but at the end of the day the worth of anything is determined by two things and two things only. What the seller is prepared to sell it for and what the buyer is willing to pay, end of story.
If your house is on the market for over three months, it is overpriced. Get over it. I don’t say that the marketplace does. Of course, you want to get top dollar for what is probably your biggest asset but unfortunately people let their ego get in the way. People view it is a home and not a house and have a sentimental component fixed into the selling price. However, a buyer does not care about your family memories, nor will he pay for that either. He wants a house for himself to make memories of his own.
Our ego is a fragile thing. It can get us into trouble and can also cloud our judgment when making a solid business decision. Don’t let your subjectivity overrule your objectivity. If you are setting a price, have a solid reason for setting it at that level. The marketplace will tell you if you are right or wrong.
The same holds true for the price of a stock. The only way a stock trades if a seller and buyer agree on a price point. Unfortunately, a lot of owners of stocks do not sell at the right time. They are either greedy and think the price will continue to climb or they are too proud to admit when they are wrong and do not limit their losses only to see the stock fall further and their losses increase. In both cases, ego has gotten the better of them to their financial detriment. Take the subjectivity out of it and have a rational plan for both buying and selling.
That is what we do at twopercentgoal.com. We have a specific, rational plan where subjectivity and ego have no place. Our goal is simple, to make two percent per week. We do this by using various technical analysis tools to enter a trade and stop losses to get out. Our technical analysis included the Relative Strength Index (RSI), 50 and 200-day moving averages, the stochastic oscillator, on-balance volume and the moving average convergence divergence (MACD). When all these signals are saying the same thing, there is a solid story to be told. There is no room for subjectivity. We checked our ego at the door. If you are a swing trader, go to twopercentgoal.com and sign up for the daily email to see stocks that are poised for a two percent gain. It is free for the first 30 days and then $49 per month thereafter. Watch this Youtube video see how we do it.
Good luck with your investments.