How to Guarantee a Loss

When people complain about how much they’ve lost in the market I usually say, “let me show you how to guarantee a loss.”

That comment usually generates a Scooby Do head tilt.

Seriously, though you’d be surprised how often I get goofy questions like: “How can I invest in the markets and not lose money?”

Or, “What’s the quickest way to make a lot of money in the stock market?”

At the risk of being rude I usually say: “Investing in anything involves risk…and if you can’t accept that then don’t invest.”

And now that the stock market has been severely beaten into submission – after 12+ years of The Most Hated Bull Market in History – people are now worried that they’ll lose everything.

Like clockwork, most novice investors start blaming their broker for not getting them out at the absolute high on January 4th.

Guarantee a Loss

So, when I hear people complain about how much they’ve lost I usually say:  “I can Guarantee you the quickest way to lose money.”

It’s really simple.

Once you sell, you’ve locked in a loss with no chance of recovering. 

Guaranteed.

Most people don’t like hearing that but it’s NEVER a loss or profit until you take it.

In our December 2021 newsletter we said it was time to take some profits and sit on cash for a while.

For those who took action, congratulations.

At the same time, we said that 2022, The Year of a Man-Made Depression, will present you with some opportunities of a lifetime.

And after what we’ve seen in April and May, we still believe that The Most Hated Bull Market in History is NOT over.

That doesn’t mean that we’re going to see the DOW shoot back up to 40,000 in the next few months.

On the contrary, we’re in for a bumpy ride into 2023 and beyond.

But…and this is a Very Big Butt…

Most investors panic when volatility is high.

As a result, they run for the exits and Guarantee Their Losses.

It’s a reminder that Human Nature Never Changes.

So, learn how to take advantage of amateur mistakes in our June newsletter (HERE).

It’s where we continue to show you “How to Prosper AND Thrive in Turbulent Times” (HERE).

Share this with a friend…especially if they’re whining about losing in the markets.

They’ll thank YOU later.

At Financial$Matter We’re Not Just About Finance.

We simply use finance to give you hope.

https://www.financialsmatter.com/category/in-plain-english/

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