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Had lunch with an investment advisor yesterday, here's what he told me: if a client of his is suffering from losses, and also worrying that they may lose more,

Had lunch with an investment advisor yesterday, here's what he told me: if a client of his is suffering from losses, and also worrying that they may lose more, he tells them to sell their position. You eat up your loss, but earn the relief from the day to day stress, fearing to lose more. I thought this was sound advice. Take your mistakes as lessons learned. Many lessons learned are extremely tough. Everyone goes through many of these throughout their lives. They're still a lesson nonetheless. This shall pass, you've lost money, but gained in experience. You've tried something. Taking risks is an essential thing in life if you want to grow from your status quo. It's a matter of learning to better assess the risks the next time. Your past and present need not equal your future. Money is abundant. Skills are more rare. Focus on skills that enable you to grow. Learn to take better risks the next time and you increase the odds to your favor in the future. All the best to you.

pc86 9y ago
The alternative (and better) advice is that if you have the funds to support it, buy more. It lowers your cost basis so the required rebound for you to break even is less. The obvious pitfall is that a continued decline means you lose even more, trying to catch a falling knife, etc etc. But for things like the stock market generally, as opposed to a specific stock or any cryptocurrency, this is a safe bet in the long term, provided you're not gambling with money you can't afford to lose.
- quickthrower2 9y ago
  This guy probably shouldn't do that. But your point may hold well for yielding investments in general. For crypto? Who knows it is pretty new so I laugh when people give investment advice about it.
- celticninja 9y ago
  I think this makes sense in the stockmarket which is much more established than cryptocurrencies which are not. The stockmarket is unlikely to ever fall to 0 and if it does then there are much bigger issues going on that you don't need to worry about it. But bitcoin or ethereum could well plummet to single digits and you could lose your entire investment. This guy invested a lump sum and if he isnt happy to lose it all he should withdraw what he can and cut his losses. If he didnt take a loan out, or used cash that was otherwise going to be use for investing it may be adviseable to hold onto it for 12-24 months and check back then.

pc86 9y ago

The alternative (and better) advice is that if you have the funds to support it, buy more. It lowers your cost basis so the required rebound for you to break even is less. The obvious pitfall is that a continued decline means you lose even more, trying to catch a falling knife, etc etc. But for things like the stock market generally, as opposed to a specific stock or any cryptocurrency, this is a safe bet in the long term, provided you're not gambling with money you can't afford to lose.

quickthrower2 9y ago
This guy probably shouldn't do that. But your point may hold well for yielding investments in general. For crypto? Who knows it is pretty new so I laugh when people give investment advice about it.
celticninja 9y ago
I think this makes sense in the stockmarket which is much more established than cryptocurrencies which are not. The stockmarket is unlikely to ever fall to 0 and if it does then there are much bigger issues going on that you don't need to worry about it. But bitcoin or ethereum could well plummet to single digits and you could lose your entire investment. This guy invested a lump sum and if he isnt happy to lose it all he should withdraw what he can and cut his losses. If he didnt take a loan out, or used cash that was otherwise going to be use for investing it may be adviseable to hold onto it for 12-24 months and check back then.