Would you like to know how to make money on Wall Street?
A man name Charles Roberts was given a good sum of money to invest into the stock market. Let’s just say it was his friends money. Well, he lost every cent of it, given the fact that he was new to the market. He dreaded the fact having to face his friends about the huge loss, but, to his astonishment, they weren’t angry. Heck, they were even good sports about it. They were incurable optimists.
This man, by the name of Charles Roberts, had been trading on a hit-or-miss basis and depending largely on luck and other people’s opinions. He was literally playing it by ear.
So, he sought out some help and came across a man name Burton who had a very sound principle called “put a stop-loss on worry.” For example, if he bought a stock at, say, fifty dollars a share, he would immediately place a stop-loss order on it at forty-five. That means that when and if the stock should decline as much as five points below its cost, it would be sold automatically, limiting the loss to just five points.
This works with life, too. How many of us have that late friend? The friend who shows up anywhere between 10 minutes to three hours late (not hyperbolically speaking, either). Put a stop-loss on it. Give them an ultimatum and say, “hey, you’ve got ten minutes. If you don’t show up, your lunch is going to be at the lake – being eaten by birds.”