Loss Comfort Zone
|
| ||
| "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. | ||
|
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," ... | ||
« View the Stock Market Dictionary »
Latest Financial Advice
Free Investment Advice
| Get free stock market tips and investing advice by subscribing to our newsletter: |
* Your information will not be shared or sold. |
Recommended Reading
Categories
- Trading Basics
- Investing 101
- Investing Essentials
- Understanding the Risks
- Beginning to Trade
- Trading Strategies
- Trading Psychology
- Retirement Investing
- Personal Finance
- Advanced Trading
- Penny Stocks
- FOREX Trading
- Commodity Futures
- Stock Tips
- Going Public
- Real Estate
- Research Tools
- Stock Spam
- Reviews
- Stock Market Dictionary
RSS