The idea of house money when investing blows my mind
I understand the math - it’s not that deep but the idea that any of my $ is house money simply because it was made on an investment rather than a 9-5 is crazy
Rule #1 don’t lose $
Doesn’t matter how you earned it. Downside risk still matters🥂
I understand the math - it’s not that deep but the idea that any of my $ is house money simply because it was made on an investment rather than a 9-5 is crazy
Rule #1 don’t lose $
Doesn’t matter how you earned it. Downside risk still matters🥂
Comments
If it's 1% of your account that you've trimmed from a big winner and you're moving into something with a huge upside - say 10x, or a zero that might be OK.
If you win, it's meaningful, if you lose, not so much.
Downside protection should always be the first priority.