As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday, 26 March 2016

Losses: Realized or Paper Losses. Be Ourselves And Fill Our Own Wallet!!!


Stop loss?

Cut loss?

Realized losses!

Paper losses!

Real or imaginary losses?

What is Uncle8888's thinking on real or imaginary losses?



 
 
 
By his past 16 years with Depth (9.x cm) and Weight (3.5 Kg), all commonly understood points, theory or concepts on stop loss, cut loss, real or imaginary losses are well taken and noted. Most importantly; he understood it financially!

ALL losses whether REAL or IMAGINARY were financially accounted on daily basis and marked to the last stock market closing price.

No illusion!
 
Financially and Mathematically accounted!
 
 
 



Stop losses are for traders. Cut losses are for investors - CW8888

Can anyhow say meh?

The two components of 3Ms - Method, Mind, and Money Management i.e. Mind and Money management.

It is all in our mind and money management.



For traders who are trading for a living; they may have little choice but to trade as often they SHOULD in order to make money from the stock market; otherwise they will be eating Wind. 

With such frequency of trades can they still survive without stop loss strategy in place?

For traders, the so-called "cut losses" are actually poorly executed stop loss.

Be clear about it. Are you trading or investing for long run and you have no doubt that your war chest will be growing too?


For retail investors who are into wealth building phase over year after year of market cycles and keeps pumping new money into your war chest; it is should be how long and how deep can you stay in this Game of Investing?


Do you continue to add more new money on top of old money in your war chest?

Do you still need to add new money from the stock market on top of old money in our war chest?

Is your war chest is running too low?



Losses: Realized or Paper Losses.

Be Ourselves And Fill Our Own Wallet!!!

BUT, no illusion over losses!

Most importantly, you shouldn't come to the stock market with your new money that you need them over the next 5 to 7 years.

This type of new money; you better keep it safe somewhere.

Two cents view from this Old Man!



 





1 comment:

  1. I investor leh. But still stop loss. So I not investor?

    ReplyDelete

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