Last word on stops tonight.
I often hear:
1. "Druck and Buffett don't use stops."
Maybe not, but none of us are Druck or Buffett.
2. "It's not a loss until you sell."
3. "It's a great company, it will come back."
When I was a rookie broker at Merrill in 98-2002, I watched a guy turn ~$250K into $1.2M and back to ~$250K. #2 and #3 were his favorite quotes.
It's a loss when your statement shows it's a loss.
I'd rather get stopped out or sell early with a manageable loss, have my cash, and figure out how to get back in — than take big losses and spend months trying to get back to even.
Investing to make money is way more enjoyable than investing to get back to breakeven.
Everything is easier when you have the cash vs sitting on a big loss or a series of them.
I often hear:
1. "Druck and Buffett don't use stops."
Maybe not, but none of us are Druck or Buffett.
2. "It's not a loss until you sell."
3. "It's a great company, it will come back."
When I was a rookie broker at Merrill in 98-2002, I watched a guy turn ~$250K into $1.2M and back to ~$250K. #2 and #3 were his favorite quotes.
It's a loss when your statement shows it's a loss.
I'd rather get stopped out or sell early with a manageable loss, have my cash, and figure out how to get back in — than take big losses and spend months trying to get back to even.
Investing to make money is way more enjoyable than investing to get back to breakeven.
Everything is easier when you have the cash vs sitting on a big loss or a series of them.