Your money is lost when you buy a stock

[padutrader]

a big cause of inflation is actually the bubble in asset prices being monetized into cash

that is why central banks try to control the assets prices by interest rates. nothing much else they can do.

even darker secret is that governments want a bubble in asset prices to prevent deflation and a deflationary spiral of the economy -as happened in Japan for the last 40 years.

so you have the backing of the government when you are a long term bull in stock market.

another reason i would never 'invest' in bitcoin. governments do not like it.

 

[wxytrader]

not sure your point, you can margin the stocks and draw cash, just like a checking account. if you have lot of unrealized gains, you can “overdraft”.

most of my funds is in brokerage accounts, i view banks are just utility companies, in and out for expenses.

Yeah and at a pretty good rate.

 

[wxytrader]

To those who claim it's not a loss until you sell, consider that once you buy a stock your money is gone.

You now own an asset not a currency. You can't spend a stock.

If you want to buy something you have to convert the stock back into money. You won't necessarily be able to sell it for what you paid for it.

When you tie up your cash in the market, you don't know when you'll need it. There are a lot of scenarios where one might need cash in a hurry. You never know when you might have to access your investments in an emergency.

Considering ways to protect your capital should be part of your trading plan!

Also, if you don't put it anywhere, inflation is going to eat away at it. Really there's no choice but to put your money in some kind of risk unless you're going to buy a government bond.

 

[wxytrader]

that is why central banks try to control the assets prices by interest rates. nothing much else they can do.

even darker secret is that governments want a bubble in asset prices to prevent deflation and a deflationary spiral of the economy -as happened in Japan for the last 40 years.

so you have the backing of the government when you are a long term bull in stock market.

another reason i would never 'invest' in bitcoin. governments do not like it.

Don't act like you're choosing not to invest in Bitcoin LOL. You missed the boat buddy. Bitcoin's gone up like how many thousands of percent LOL. It was literally the same price of gold like 5 years ago. How are they looking now?

 

[zghorner]

To those who claim it's not a loss until you sell, consider that once you buy a stock your money is gone.

You now own an asset not a currency. You can't spend a stock.

If you want to buy something you have to convert the stock back into money. You won't necessarily be able to sell it for what you paid for it.

When you tie up your cash in the market, you don't know when you'll need it. There are a lot of scenarios where one might need cash in a hurry. You never know when you might have to access your investments in an emergency.

Considering ways to protect your capital should be part of your trading plan!

I missed the entire point of this thread which is in the first sentence.

"it's not a loss till you sell" is WSB teenager bullshit...it's literally a loss in your net worth even if you cant write it off yet. You become worth less when you bag hold a steady loser.

 

[deaddog]

"it's not a loss till you sell" is WSB teenager bullshit...it's literally a loss in your net worth even if you cant write it off yet. You become worth less when you bag hold a steady loser.

Your losers might recover or might not, in the mean time your capital is tied up and not available to take advantage of any oportunities that might present themselves.

 

[deaddog]

Also, if you don't put it anywhere, inflation is going to eat away at it. Really there's no choice but to put your money in some kind of risk unless you're going to buy a government bond.

Or a Lambo, I hear they are a pretty good store of value.

 

[Overnight]

Don't act like you're choosing not to invest in Bitcoin LOL. You missed the boat buddy. Bitcoin's gone up like how many thousands of percent LOL. It was literally the same price of gold like 5 years ago. How are they looking now?

Speaking of gold, WTF was that action today? GC shot up 50 points! Jeez!

 

[Drawdown Addict]

I like that way of thinking: "once you open a trade your money is lost"

I think it gives some advantages over people that keep looking at an unrealised pnl.

It would help you to execute a plan, since you a not emotionally invested, you would be able to execute what is needed, specially when taking loses are required.

I would add even more, we should have another pnl available. One that starts at your maximum loss, set by your stop, that would only change if the trade is turning profitable. Then any positive pnl would always be held by that initial maximum loss. The pnl would turn green only after covering the planned drawdown.

 

[Franziskaschulz]

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To those who claim it's not a loss until you sell, consider that once you buy a stock your money is gone.

You now own an asset not a currency. You can't spend a stock.

If you want to buy something you have to convert the stock back into money. You won't necessarily be able to sell it for what you paid for it.

When you tie up your cash in the market, you don't know when you'll need it. There are a lot of scenarios where one might need cash in a hurry. You never know when you might have to access your investments in an emergency.

Considering ways to protect your capital should be part of your trading plan!

excuse my language but what you say is total nonsense. firstly when trading you not actually buying anything, secondly the same situation is with gold and every other type of commodity. using the same logic I can say your funds are gone once you buy any type of currency but your country's currency because you will not be able to buy things with that you will need to convert that back to your currency first!