Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
What you need to make to recover your losses
Cost Loss Price Return
price (%) After required (%)
loss (%)
$100 5 95 5.3
$100 10 90 11.1
$100 20 80 25
$100 50 50 100
$100 70 30 233
$100 90 10 900
SOURCE: FAIRFAXhttp://www.businessday.com.au/news/business/money/planning/sure-and-steady-in-volatile-times/2010/02/02/1264876022132.html
Conclusion, any loss less than 20% still has a chance at recovery. Anymore than 20%, better stop loss.
ReplyDelete