Bye Bye Money

There is a short poem that goes.

Money talks, I cannot deny,

I brad it once. It said bye bye.

I have never understood why people cry about losing money in the investment market. They do not cry when they go to the grocery store and send money they do not get back. They did do not cry when they buy a car land lose money when they sell it. So why should investing be any different?

You have not lost any money as long as you do not sell the stock. When I hear someone saying something like that, it often means they bought high and now the price is how and they are waiting for the stock price to go back up. There is more validity to thinking that way but only in special case situations.

A thought opposite to that is, cut your losses early. There are times when I have invested poorly and the price of investments drops rather than climbs. If the price of stock drops more than 10 percent. Cut losses and look for something new.

Attention is focused too much loss and I feel badly for making a bad decision. I just want to cut and move on. I know that out of ten investments. Odds are that two to three will be bad, two to three will be good and everything in the middle just lies around like a lazy dog. I will occasionally let the lazy dogs lie as long as they are not losing money. If they become real dogs, I cut and review my mistakes and take the lessons.

If I have less money to shop with, I am happier shopping rather than buying, holding and praying that the investment will go back up someday. As I said, most people don’t cry when they sell their formally new, now used, car for a loss. The reason they don’t cry is because they are usually shopping for a new car.