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Derek sent me an awesome email regarding his experiences flipping skins. Personally, I found that holding skins for about 1-2 months after an event and then selling them worked best for me, but your mileage may vary. I asked Derek if he sold skins around the 2 month interval or 6+ months, and this was his response:
"Well, it sort of depends on the market. To me, there are two competing mindsets I have (and these can be applied to stocks as well): 1. Take profit at all points. Once you've hit a desired level of return for 1-2 months, you start selling, keeping some percentage of your initial investment in case it continues the upward trend. or 2. Sell at the highest point. This maximizes your overall profit per item, but may take a long time.
Once opportunity cost is factored in, I think most traders come around to your method of thinking: That selling them 1-2 months after purchasing is better than holding out for the long-term. But, I'm not a trader anymore, I'm an investor. A trader is active, constantly watching the market and looking for new opportunities. An investor is passive and adverse to moving his money around/risk in general. To the investor, holding an item for 6-12 months could be worth it because he's not particularly looking to shift his investments around.One example where this worked in my favor: I originally bought 2 Dreamthistle Sword Skins when they were worth 1 BLC ticket. I sold one over 3 months ago for 238g. I was stoked, 400% profit was great, but I held off selling my second one. 3 months later, I find that someone bought them all out and relisted at 400g. Whether it'll stay there remains to be seen, but sometimes hoarding can yield astronomical returns if it is the right item/market.Best,Derek"
Thanks Derek, I'm sure that helped a lot of people!