Loss Comfort Zone
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| "Loss comfort zone” is the percentage of loss you can experience on a single trade and not lose sleep at night. Every investor has a loss comfort zone, beyond which they will become very fearful and uncomfortable. | ||
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Additional Comments:
If you invest in the stock market, you are guaranteed to lose money on some trades. Some investors can tolerate a loss of 20 percent on a single trade; some 10 percent; some as much as 50 percent or more; and some as little as 5 percent.
Only you know your own loss comfort zone and your tolerance for loss. |
Related Terms: | ||
Stop Loss It is advisable to protect loss potential by entering an order that will "stop" the trade ... Stop-Loss Order An order to sell when the price of the stock declines to, or below, a stated ... Stop Market This type of stop loss order is known by various names, such as "stop," "stop loss," ... | ||
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