RE: once bitten, twice shy9 Oct 2020 17:02
The greater lesson KJ, if you don't mind me saying (and I really , really hate the term bed wetters), is the fear share holders experience when a stock is falling is because they are over committed. The saying "don't bet more than you can afford to lose" needs a little more understanding I think.
I would imaging most here could afford to lose somewhere between £5-£10k in absolute terms. yes it could be very difficult but in the great scheme of things over time, they could weather the discomfort and inconvenience that loss would mean.
But thats not what is meant by "don't bet more than you can afford to lose" What it means is what ever the loss is that you cause you anxiety, and that could be as little as (relatively)£500 or £1000. So, what I read here is that when the SP goes down 10, 15, 20% from the buy in price of the individual they become anxious and fearful of the loss of money, because emotionally, its more than they can afford to lose. You think that's rubbish?
Can you imagine how you would have felt buying at 400p per share and it falling to 320p if you had only bought £100 worth of shares? you would have been sitting on a £20 loss. I don't think that would keep anyone here up at night or needing to post? What you you think?
Only ever bet with what you can afford to lose, but understand what that amount is. be honest with yourself. (its not like you have to talk to anyone about it.)
Learn that lesson and life playing this game gets easier, a lot easier
And finally as lessons go here is another corker...
Its actually hard to get rich quick, but surprisingly easy to get rich slowly. If you are still in your 30 or 40's you have decades to grow your income, you don't need to double it every year, If you can make 10%-15% a year life will end up pretty sweet.