No, I'm simply explaining to you that until you realize a gain on an asset, you haven't done anything with its wealth, nor it with yours.
You have a bank account with $101 dollars in it.
Feeling lucky, you withdraw $1
You invest that $1 in a stock. It goes up to $200. You are greedy and don't sell. It falls to $100. You relent and sell.
You place your proceeds in your bank account.
What is the value of your bank account now, ceteris paribus (and ignoring commissions/fees for the trade)
Has your net wealth increased?
Would you be in favor of having yearly capital gains taxed on UNREALIZED asset appreciation?