Asian share markets opened sharply lower Tuesday morning in the wake of the continuing financial crisis in the United States that sent 158-year-old investment bank Lehman Brothers bankrupt and American International Group, Inc. (AIG), one of the largest American insurance corporations, on the brink.
A couple of months ago, my friend lamented that he is losing money on his share investments. I told him that the market is too volatile to invest in, even for short to mid-term but he told me that he already got a foot in and could not withdraw.
Ah, I can certainly understand it but share investment is very risky and one must always be prepared to cut losses. If you are unwilling to get out as the market is falling, you may see your investment reduced to nothing.
Of course, for those who have plenty of staying power, there's nothing to worry about as the market will always go into a cycle and every downturn will have an upswing too. The question is when and how long more will that happen.
In the case of my friend, he may be feeling the heat but he actually is very solid so I don’t think he will want to lose ANYTHING by cutting his losses as the market falls.
A couple of months ago, my friend lamented that he is losing money on his share investments. I told him that the market is too volatile to invest in, even for short to mid-term but he told me that he already got a foot in and could not withdraw.
Ah, I can certainly understand it but share investment is very risky and one must always be prepared to cut losses. If you are unwilling to get out as the market is falling, you may see your investment reduced to nothing.
Of course, for those who have plenty of staying power, there's nothing to worry about as the market will always go into a cycle and every downturn will have an upswing too. The question is when and how long more will that happen.
In the case of my friend, he may be feeling the heat but he actually is very solid so I don’t think he will want to lose ANYTHING by cutting his losses as the market falls.
0 comments:
Post a Comment