Originally Posted by
DreamboatAnnie
Hi Quabit, I feel for you. Losses are tough to take. Word of caution--- set your loss limit and execute an exit if you hit it.
Riding it down seems okay until fear sets in. Some have taken that view and dug a deep hole that is very difficult to come back from, and we have had some lose in excess of 10-20% over multiple transactions. Others say as long as you do not sell, the loss is not booked. This is true if you have the guts to see it drop a lot, do not exit and if we do not go into hard downturn and market recovers fairly quick.
I know myself well enough to know I am awful at dropping more than a few percent. So, my hands down stop/exit is at a loss of about 3% on a trade, and under no circumstance will I stay in with a TSP drop below 0% for the year without immediately exiting (which is more likely at start of year when gains have not yet accumulated).
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