TRADING LOSSES

The financial industry teaches not to worry about trading losses. They say it is okay to lose money today because OVER TIME, THE MARKET ALWAYS MOVES UP.

It is comments like these that keep them in business. It is comments like these that deflect blame toward the industry. They even come up with "Dollar Cost Averaging" and "Buy more when the stock is on sale."

Why do we continue to throw good money after bad? Do you realize how much you are really losing when you mismanage you portfolio?

If you let your portfolio value drop by $1000.00 and you continue to stay in the investment, or worse throw more money at it, you end up losing way more than $1000.00.

Let's figure it out:

Today's value of your loss is $1000.00 but what have you really lost? Carry that forward...

Compound $1000 at 15%, (which is easily attainable):

• 10 years = $4,440.21
• 20 years = $19,715.49
• 30 years = $87,541.00
• 40 years = $388,700.68

When you start to understand that each $1000 that you have today could be worth $388,700.68 in your lifetime or in your heir's lifetime, you will start to protect your money and you will stop listening to your broker telling you it's okay to lose.

If you want to learn how to invest in stocks and how to manage your money to avoid losses, let Stock-Market-for-Beginners.org be your stock investment guide. This is a stock market for dummies site. Here, we KEEP IT SIMPLE!

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