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Feeling depressed about paper losses?
Aspire, Personal Finance | 07 August 2015
Articles (41) Profile

Investing is an activity that comes with risks, which explains why some compare it to gambling. Most investors inevitably face losses at some point of time, but how much is too much, and what is the right mindset to adopt?

I have received notes in various forms from readers on the subject of plunging stock prices recently.

Here is an example:

I think I have been quite depressed over recent market falling.

It’s serious— paper loss about 35k. I started to doubt that I should
quit investing.
What I have earned from past few years was just enough to cover for my paper losses, which amounted to 10k.

I have limited cash now. Sometimes, or most of the time, I do feel a little disappointed in myself. I feel like I am a failure, as others who do investment are so successful while I am just a loser. I feel like selling all and quitting investing altogether.

My Reply


I have a feeling that you might have over-committed to the stock market. You would probably want to relook and decide if you want to re-size your positions, taking some losses in the process, if need be.

If you are losing sleep at night, you have probably over-invested. It could also be because you didn’t quite understand what you were buying into and whether you paid prices you could live with even in a downturn (which is when you should be thinking of buying more).

It might be a good idea to cultivate the right mindset before investing again, if you decide to continue the journey as an investor.

Best wishes,

I have also recently shared a conversation with a reader on Facebook:

AK has his float. Do you?

We should invest for a better future and we should invest in a way that gives us peace of mind. What is the way? Well, it could be quite different from person to person and I have shared mine here in my blog many times before.
Know ourselves, know our motivations and know the right tools to use.

AK is a Singaporean stock market investor and a popular blogger. His blog was created with the intention of educating investors and sharing his investing journey with the target of having a more secure financial future in an uncertain world by creating a stream of reliable passive income with high yields.

Please click here for more information about this author.

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