A classic story told to new investor is the one in which a young investor seeks help from an old investor. The young investor had a serious problem. He had invested in extremely expensive stocks and the market was turning on him. The market was overvalued and he thought perhaps had invested in too much risk. Not knowing what to do he went to the elder investor to ask advice. The young man didn't sleep or eat because he was so nervous about his decision. After hearing the young man's problem, the old investor told him to sell and sell back to the sleeping point.

This is perhaps simple wisdom from a simple time. However, there is truth in the advice. The old investor was telling the one young to sell enough not to destroy his financial stability but keep enough that if the market does increase he wouldn't kicking himself in the behind. Obviously neither investor knew what the motion of the market would be