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!
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