Why Stop Losses Actually Increase Risk

Why Stop Losses Actually Increase Risk

In this video we are going to to discuss stop losses, why they are a bad idea and why they actually increase risk, despite what pretty much everyone says, they are a bad idea.

Small down movement lock in losses when the shares might rebound quickly.

When shares gap over a stop loss, you might not notice.

They create a false sense of security, especially with the threat of gapping, you might not pay attention as closely to news and your portfolio if you feel safe with your stops.

Use stop losses at your own peril, in most cases they increase risk, lock in losses and give you a false sense of security

Market Crash | Stonks Only Go Up!?

Market Crash | Stonks Only Go Up!?

The original quote is believed to be, “Buy when there’s blood in the streets, even if the blood is your own,” Baron Rothschild, made a fortune when it was said Napoleon won the battle of Waterloo.

Also attributed to John D Rockefeller, “The way to make money is to buy when blood is running in the streets.”

Also known as contrarian investing, going against prevailing market trends.

“Be fearful when others are greedy, and greedy when others are fearful,” Warren Buffett, invested in the Washington Post during the 1973-74 bear market which increased 100 fold.

Also known as catching a falling knife, Sir John Templeton would buy into countries and companies at the “point of maximum pessimism”. He invested in every publicly traded European company at the outset of WWII in 1939, sold in 4 years at huge profit

“You pay a premium for a cheery consensus,” Warren Buffett, but you have to do some serious research to ensure the crowd is indeed wrong, find out why a stock is down and whether the price is justified.

Buy when there is blood in the streets… even when it’s your own blood.

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