Limited Tickets Available!
Tuesday, April 22nd
Richardson Auditorium at Princeton University
$45 – Chamber Members
$60 – Non-Members
Ticket price includes a signed copy of Arianna’s new book, Thrive: The Third Metric to Redefining Success and Creating a Life of Well Being, Wisdom, and Wonder.
Arianna Huffington, chair, president, and editor-in-chief of the Huffington Post Media Group, will discuss her latest book, Thrive, with Anne-Marie Slaughter, President and CEO of the New America Foundation, Emerita Professor of Politics and International Affairs, who published the article “Why Women Still Can’t Have It All,” in The Atlantic in 2012. Slaughter’s piece quickly became the most read article in the history of the magazine and helped spawn a renewed national debate on the lasting obstacles to genuine full male-female equality.
President and CEO of the
New America Foundation
Emerita Professor of Politics and International Affairs,
The best-case scenario for any investor is to buy low and sell high. This is one of the most fundamental principles of successful investing. However, no matter how much one tries to shoot for that goal, the simple truth is that investments will not always be in our favor. Here’s another truth: Investment always involves risk. Ideally, the bigger the risk, the bigger the pay-off, but investments are far from ideal, and they don’t really have to be. In fact, even with a 55% win rate, you’ll make a fortune given enough time. However, this article is going to focus on the subject of losses – most importantly, how to control them.
First things first – before you start trading, evaluate yourself clearly. Be honest with yourself. What you’re looking for is the answer to the question, ‘How much I am willing to risk and still feel comfortable?’ This is a very personal question, and you’re the only one who can answer it. If you’re not comfortable with the risk you’re taking, then chances are that you’re going to take losses that you could’ve avoided.
Nowadays, every time you place a position, you’re given the option of using Stop-Loss orders. Stop-Loss orders are placed at specific prices. When the price of an investment falls beyond the Stop-Loss, then an order to let go of the position is then executed automatically. However, many investors are against stop-loss orders, claiming that they’re too restrictive. Though that argument has merit, until you gain some experience and a feel for the market, it’s best for beginners to make use of Stop-Loss orders.
The Right Investment
There are different kinds of paper-trading markets. There are the commodity, foreign exchange, bond and stock markets. Each market behaves differently, and it has its own lingo that you should learn. One of the ways you can control losses is to have a good-working knowledge of the market you’re investing in. If you don’t have any experience yet, then start educating yourself. Basically, the right knowledge is one of the best tools for controlling losses.
Hedging’s basically a technique where you retain the value of your position without regard to whether the market goes up or down. There are several techniques to accomplish this. One of the most popular ways is to buy an option. An option is the right to sell or buy an investment within a certain period of time. For example, if you have the option to sell your position at $10, and the price of the position falls to $5, then you can execute that option, selling your position at $10. As a result, you haven’t taken a loss. However, if you really want to control the loss, then you have to buy two options. One is to shield when the price goes up, and the other when price goes down. This way, no matter where the market goes, you have the option to sell your investment at a specific price.
The Right Market
One of the most costly mistakes for new investors is arguing with the market. If an investment goes down, you must evaluate carefully whether the reason to buy that stock is still there. What you don’t want to do is to hold on to that investment, hoping that it would go up. Never argue with the market, since the market will always be right!
Hurley Ryan writes about finance. His recent work is on the best online colleges in finance.