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.
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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