"I'm A Long-Term Investor; I'm Not Worried; I'm Still Getting My Dividends"

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"I'm A Long-Term Investor; I'm Not Worried; I'm Still Getting My Dividends"

Another risky statement is to say to yourself, "I'm not worried about my stocks being down because they are good stocks, and I'm still getting my dividends." This is naive because good stocks can go down as much as opinion that they are good stocks.

Furthermore, if your stocks are down 25% in value, isn't it rather absurd to say you're all right because you are getting a 4% yield? A 25% loss plus a 4% income gain makes a big fat 21% net loss.

If you aspire to be a successful investor, you must face facts—most of the reactions you have about taking losses are rationalizations, because no one wants to take losses. You have to do many things you don't want to do to increase your chances of success in the stock market. You must develop exact rules and tough-minded selling disciplines.