10-16-2021, 07:24 AM
Are paper losses in your stock market investments "real losses" to you?
<!-- SC_OFF --><div class="md"><p>Back in my foolish days, I invested a significant share of my money in individual stocks. While I made money in many of these investments I did pick lots of losers. I still hold on to these stocks years later and many are down 40-80% from my purchase price.</p> <p>My wife tells me they are only paper losses because they still have some value but I have not sold them. I consider any stock, Mutual Fund, or ETF that I own that is not currently at its all-time high price since the day I bought them to be a loss. (So I am down in all my stock market investments since early September when the market peaked.)</p> <p>I look at the stocks, ETF's and Mutual Funds in my portfolio to be like chips at the casino. If I am in Las Vegas on a four-night trip and are winning on days 1-3 and at my peak had doubled my money and don't cash in my chips, if day four is a loser and I end up just slightly above my starting cash position, I would leave town feeling like a loser because I could have cashed out at the end of day three after I had doubled my investment.</p> <p>How do you see it?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/rarelywearamask"> /u/rarelywearamask </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/q8qnjc/are_paper_losses_in_your_stock_market_investments/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/q8qnjc/are_paper_losses_in_your_stock_market_investments/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Back in my foolish days, I invested a significant share of my money in individual stocks. While I made money in many of these investments I did pick lots of losers. I still hold on to these stocks years later and many are down 40-80% from my purchase price.</p> <p>My wife tells me they are only paper losses because they still have some value but I have not sold them. I consider any stock, Mutual Fund, or ETF that I own that is not currently at its all-time high price since the day I bought them to be a loss. (So I am down in all my stock market investments since early September when the market peaked.)</p> <p>I look at the stocks, ETF's and Mutual Funds in my portfolio to be like chips at the casino. If I am in Las Vegas on a four-night trip and are winning on days 1-3 and at my peak had doubled my money and don't cash in my chips, if day four is a loser and I end up just slightly above my starting cash position, I would leave town feeling like a loser because I could have cashed out at the end of day three after I had doubled my investment.</p> <p>How do you see it?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/rarelywearamask"> /u/rarelywearamask </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/q8qnjc/are_paper_losses_in_your_stock_market_investments/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/q8qnjc/are_paper_losses_in_your_stock_market_investments/">[comments]</a></span>Kind Regards R