Forum post of the day: Using the Auction House properly

Reader Comments (Page 1 of 1)

7-12-2008 @ 2:07PM

Dave said...

The first response is only right in the simplistic sense that says money above initial purchase price is profit and as long as you're a cent over that, you're good.

But, you have lost money if you sell something under market value, regardless of how much you paid for it. This is not the same as a loss, but it is lost money. The only scenario in which this isn't true, is if the price is never going to recover to the previously established market value and your new selling price is representative of the true market value. Then you haven't lost anything at all.

However, if things are selling for 100, and you settle for 50, there's no reality where it isn't true that you didn't just lose 50. That 50 is represented in a value that describes why you didn't sell for 100. Impatience, ignorance, or anything in between is worth that value you sacrificed from the market.

This is how plenty of people make their fortunes.

Add your comments

Your comments:

Remember me

E-Mail me when someone replies to this comment

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.