[MUSIC] Okay so now in this second video, we're going to focus on the selling aspect. We've entered into a position. And let's assume we finally, after, you know, observing this company for many years, in 1999, we decide to purchase and make an investment, and we buy 1,000 shares at 30 euros. So we spend 30,000 euros. So, you see the price evolution here, The stock keeps on rising and goes from 30 to 60, and from these peaks, it starts falling. Now, the right question to ask yourself is, since you have not sold at 60, so you still have 1,000 shares, okay, of Nokia. The right question you should ask yourself is if I had 20,000 euros today, would I buy Nokia share? And if you take a minute and think about this you will see that very often, and I do this test. When I meet some investors who have made an investment and the stock goes up and then it drops and it drops below the purchase price, people freeze. They don't act anymore, they just keep their position and they argue, okay I'll wait, I'll wait. And the more they get wrong, the more the position decreases so the weight of the mistake decreases in your portfolio. So they wait, they wait, they wait, they wait. So I asked them the following, just the same question I asked you here. If you had 20,000 euros would you invest in Nokia today and very often the people would say no way, the stock is way too risky. Obviously coming from 60 to 20 it's been divided by 3, that's a lot of risk. Okay, so, then I say, okay, so if you're answering no, now I would not buy, why are you keeping it? So you see here, the difference in acting, this is not very rational, but this is the way it works, you know? We don't want to sell an investment which is loss-making. The problem here is that we're making a confusion between unrealized and realized losses, okay? And just thinking that because we are not selling something which is loss-making, we're not making a loss, is wrong. This is an unrealized loss and we should take it into account. Okay, in the third video we're going to see that it's not the price action, which should determine whether you should exit a position on odds. So very often the mistake we do is that we buy a stock and then we make 30% return, and we decide I made some nice returns, I sell. And when you buy a stock, and it goes up, and it goes down, and it goes below your purchase price, and you don't sell, you just wait. This is wrong, and we will see in the next video, how we should motivate our decisions to sell.