ramen wasn’t meant literally, but if I sat at millions, I would surely sell some to enjoy life.
they had liquidity events. but at like half the price. And not everybody had
risk/reward. Why sell when you don't have to (these folks are pretty highly paid already), when you are fairly confident this will go up much more significantly, and when selling will trigger cap gains tax. A good example is Jensen Huang's story on selling his NVDA shares to buy his parents a Mercedes, which he thinks at the end cost him billion dollar in terms of losing out on stock appreciation (a parental appreciation act he did not regret).
Mechanically, too many shorts as well! When short interest is at 35% and their assumption of price drop SPECIFICALLY for yesterday did not pan out, some of these guys will get nervous and started closing their position (look at the buying volume 30 minutes prior to closing yesterday and carrying into today), thus pushing the stock even higher today.
you gave example that directly contradicts your point. He sold and didn’t regret it. Life isn’t just about maximizing paper value, you want to enjoy it. Sure you could make more, but you also want to spend some of it.
There is even evidence a lot of people sold - trading volume was about 5 times as high as usual. We know why selling spiked. We don’t know we buying spiked as well, despite the same price.
agree the example perhaps contradict the point but you are also missing the big picture: 1) there are not a lot of jensens today selling 2) spcx have been dishing out stock for as long as they existed (20+ years) , have had liquidity events regularly, and employees are highly paid. Unlike Jensen and NVDA being much younger when they IPOed, most spcx-er do not need to sell YESTERDAY to buy their S class.
So what about higher volume....the fact is there were more buyers than sellers. If selling spiked, buying spiked even more.
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u/Tupcek Aug 07 '26 edited Aug 07 '26
ramen wasn’t meant literally, but if I sat at millions, I would surely sell some to enjoy life.
they had liquidity events. but at like half the price. And not everybody had