Investors sometimes struggle with their emotions in differentiating between a loss of capital on paper, say a 20 per cent decline on your favourite stock, and with a permanent loss of capital.

In this instalment of our Investor Education Investment Series, John O’Connell explains how investors should approach both scenarios in different ways.


Related stories:

How Much Volatility Can You Tolerate? – Part One

Focus on These “Three Buckets” for Your Investments – Part Two

Investing vs. Speculating – Part Three