The 10 Percent Story

No!

Scenario: $100,000 - 10% leaves an investor with $90,000

However,

Scenario: $90,000 + 10% leaves an investor with $99,000

Where did that $1,000 go?

In the above scenarios it takes over an 11% gain just to get back to even.

If possible (stop loss) never let losses enter the double digit zone.

Why?

Scenario: $100,000 - 20% leaves an investor with $80,000

However,

Scenario: $80,000 + 20% leaves an investor with only $96,000

It would take a 25% gain just to get back to even.

Stop loss, Limit order, Price alerts!