I’ve learnt several lessons in my lifetime as a stock market analyst and investor.
One of the most enduring of them has been – taking small losses is often better than taking small gains.
The sad part is that it took time for me to learn this important lesson.
I’d read it many times that investors must try to “cut their losses short and let their winners run”.
Sage advice, but I did not follow till about the fourth year of my career. So I was…
- Asking people to sell stocks after small gains only to watch them head higher, and
- Recommending stocks with small losses only to see them worsen.
You see, no one will deliberately buy a stock they believe will go down in price and be worth less than what they paid for it.
[Read more…] about A Big Lesson I Wish I’d Learned Early in My Investing Life