Something’s burning: Is it your retirement?

Marcus Padley

Marcus Today

You can’t teach an old dog new tricks which is why despite all the financial logic you can’t get those stuck in the mud long term set and forget investors to use stop losses. Anyway, if your grandad had used stop losses he’d have sold those BHP shares back in 1886. If that’s as far as you're prepared to go to protect your retirement, fair enough, you’re a hopeless case, and you'll have to rely on the market always going up. You never know, you might be right. But you’re ignoring the fact that if you’d used even the laziest of stop losses you might have sold those ABC Learning and Babcock & Brown and you might not have lost 54.5% in the GFC and saved yourself thirteen years of lost average returns. Ultimately stop losses do little more than that buzzer that says “Something’s burning!”. Your retirement, maybe? Read a few things you might not know about stop losses: (VIEW LINK)

Marcus Padley
Marcus Today

Marcus Padley founded Marcus Today in 1998 and leads the team of analysts and market commentators that publishes a daily stock market newsletter, presents four podcasts and runs an $80m Australian equity fund. He is passionate about educating and...

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