As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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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

Thursday, 12 April 2012

Realized or unrealized losses??? Does it seriously matter???

Read? No stop loss??? The truth behind Uncle8888's no stop loss strategy. Know what you are doing!

"Track, measure, and visualise investment performance" - Createwealth8888

Realised or unrealised losses?

The way that I track, measure, and visualise my investment performance and doing cash and portfolio management will  determine the relevance and significance of realising losses to recover cash for investing i.e. opportunity cost.

I measure Portfolio XIRR to visualise performance.

Portfolio = Current stocks value +  Investible Cash  = Capital + Realised P/L + Unrealised P/L

By just moving from Unrealised P/L to Realised P/L it will not significantly change the Portfolio XIRR unless I have the market wisdom of seeing a huge Bear appearing at the horizon soon.

Cash, Opportunity cost and Recovery

Cash rotting in the bank will NOT help me to recover my locked in negative return. We cannot recover losses in stocks by holding cash. No way!

Powerful ways to overcome your emotions in the stock market. Truly understand how you manage your cash and  portfolio is the key!

Read? More post on Portfolio Management

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