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When was the last time when you lost money while investing?
Photo by anahitox at Flickr
My first time was when I was sixteen. I invested in a “business” of selling post cards to tourist in a Summer resort. My investment wasn’t big as I had only to buy 10 pieces of each card, so it made something like 500 post cards. The business didn’t work out however so I had to close the “shop” (a table on the street) and go back home. I had about 200 cards left and I had the choice to either keep staying there day after day trying to sell them, or sell them discounted to my competition on the next street. I’ve chosen the latter. I lost money and learned that sometimes it’s better to sell out my positions at loss rather than to keep them and hope for the best. I had better things to do.
Just recently I lost a nice amount of money again due to my habit to keep cash online. No, I wasn’t robbed or hacked fortunately. But the few thousands dollars I was keeping online for years just because I did not need them have lost more than 30% of their value due to the dollar crash. Add another 30% inflation for that time in my country and you’ll see me losing more than half of actual value. I lost money and learned that money not invested is money lost.
Sometimes we have to lose money in order to gain good lessons. Make losing sexy and use the lessons learned to improve your investment strategy. Losing is not scary. Not taking actions is.
When was the last time when you lost money while investing?
March 21st, 2008 at 2:00 pm
I agree. It’s like falling of a bike or falling while skiing. No other way to learn.
March 21st, 2008 at 2:45 pm
Another Edition of the Investment Basics Carnival…
Welcome to another edition of the Investment Basics Carnival. I’ve picked the following articles because I believe they offer added value. I’ve added my own thoughts to each article. Hopefully you’ll find them stimulating….
March 21st, 2008 at 3:05 pm
Thanks Dorian, for the link and your comment.
March 22nd, 2008 at 4:54 pm
Well the way money is pissing out of me right now from the likes of Gf and Ebl,,, i deff goona get laid to night!
March 28th, 2008 at 9:14 am
[...] Handzhiev presents The Sexy Art Of Losing Money posted at The Shark Investor. Losses are part of your financial growth, don’t be afraid of [...]
May 8th, 2008 at 11:46 pm
[...] As I wrote at the time on posting it, I did not create the poll just for my pleasure. I wanted to understand what really is troubling you the most on your way to achieving your financial goals. On the second place are 33% of the readers who lose money because of bad investment decisions. We are already working hard on this together, don’t we? It’s a long process and I believe we’re all learning and doing better with the time. And don’t forget that making mistakes and losing money is not that bad. [...]
May 11th, 2008 at 8:49 pm
[...] opportunities We all do this. We miss opportunities because we are afraid not to lose money. But losing money is not such a big problem, if you gain a lesson. Don’t miss good opportunity because of [...]