No Comments Written by Anthony Truong on September 29, 2008 – 3:42 pm

Question: I can’t afford to realise my (paper) loss at the moment; I’m staring at a $10k loss! I can’t afford that dammit!

Answer: Honestly, I know I’m not a financial advisor or similar, I’m just an analyst with an awesome ability to predict market movements (!!!), but my suggestion is take the $10k you have left (”glass half full” mentality) and stash it under your bed…or a safe.

Seriously, a $10k loss is BETTER than a $15k, or $20k loss. And given the market conditions, any company (including those you have invested in) could easily go bankrupt. Just look at the banks that are going under in the US and Europe: they are massive, worth tens if not hundreds of billions of dollars (in market capitilisation), with hundreds of billions in assets under management, most having existed for at least a century. And they’re going under. So…how risky is a speculative mining stock that has only existed for 5-10 years and has a market cap of 100 million dollars, with debt outweighing assets on its balance sheet? Think about it…