Stocks Mutual Funds Information
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Next Stocks Mutual Funds Topic : Market Success - Who are the successful investors?There are those who follow the advice of their brokers and financial planners or those who choose to use their own good judgment? If you care to compare the results of the past 4 years from 2000 to now I believe you will see who as done the best job.In the old days at the Chicago stock yards they used ...[ read more]
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Dont Lose All Your Money
That sounds like good advice doesn't it? Don't lose all your money. After all what is an investor without funds in the brokerage account? Hint: BROKE! On the subject of investing, this means getting out of a trade when it goes against you. Don't lose all your money. This is the MOST important thing any investor can do. Cut your losses before you're broke. It's easy to do, but some investors find it hard to implement. Don't become so attached to your buying decision that you ignore this advice. Set a stop loss figure on every stock or investment you have. Decide on how much you are willing to lose before you buy. All brokerage accounts have a way to set a stop loss. You can do this right in your account so that it's triggered automatically. Use an actual price or a percentage. Take the time to learn how to set up a stop loss order or trailing stop in your particular brokerage account. Or if you have the time and stick-with-it-ness to monitor your account on a regular basis (like all the time), keep track of where prices are mentally. Here is an interesting chart that shows how much an investment has to go BACK up for you to get all your money out. Take a look at this... If the price per share goes down 10% - the stock has to go back up 11% for you to get back to even. Not convinced yet? ...down 20% - the stock has to go back up 25%. Looking at this would suggest you are gambling if you set a stop loss at more than 25%. Bottom line is, don't fight the trend and the hard reality of numbers - Use a stop loss to get out of any investment that goes bad. Don't lose all your money! Tom Donaldson shares his investing experiences on his Panglossian Investor Blog and invites you to join the Panglossian Investor discussion group.
Related Products For Download: Read Next : Market SuccessWho are the successful investors?There are those who follow the advice of their brokers and financial planners or those who choose to use their own good judgment? If you care to compare the results of the past 4 years from 2000 to now I believe you will see who as done the best job.In the old days at the Chicago stock yards they used ...
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