Read? My money works harder for me (3)
Does my money need to work harder at all times?
Learn from the Wisdom of the Fisherman
When the tide is coming in, the fisherman may use all his available fishing rods and may even change to bigger hooks as rising tides may bring in more fishes and even bigger fish. The chances of catching fishes or bigger fish are high so don't spare the rods.
When the tide goes down, the fisherman will start rolling back his fishing rods and wait for the next high tide. When the tide is low, the chance of catching of bigger fish will be low; but the risk of getting your fishing hook and sinker get caught by the under-water obstacles is high and that may break your fishing line and lose your sinker. To replace them will cost you some money.
Read? The Best Secret in Investment and Trading – Compound Interest
Let me share the "Next Secret" to the "Best Secret of Compounding."
In order for the magic of compounding to work effectively for you, you must TRY to protect against losses at all times.
Read? The Greatest Lesson that I have learnt from my losses!
Understanding the Best Secret may not be good enough, you still need to understand the Next Secret and learn from the wisdom of the fisherman - you don't need to fish all times but go with the tides.
The hard truth is that preventing losses is as hard as making money in the stock market. Beware!