Will you still invest money in if you already lost 7000 dollars?

I lost about $20,000 in February on a biotech stock. I sold the biotech, and bought some new stocks and was able to make back most of my losses. If you take a loss, the best thing you can do is analyze what you did wrong. Why did you think the stock was a good investment? were you misled? Learn from your mistakes. What I learned was, it is hard for the small individual investor to invest is risky biotech stocks. Click the link to read why:

http://www.top10traders.com/ViewPost.asp...

This link is from http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors.

Hope this helps.

No. Never. No.

If I was currently investing I would have a stop loss to prevent me from losing that much money to begin with. But a huge drop one day is a buy the next.

Depends on what % of my total I have to invest that the $7K represented. If it was within my money management plan, then I have no problem continuing to invest.

Now if it was a bad plan I was following, and I lost a bunch of money, I'd have to pause and reevaluate. But overall, as long as the losses are within the plan, I should keep continuing on as in the long run, I'll make much more than $7000.

Hope that helps!

Depends - what percentage of my total net worth does $7000 represent? 1%? 50%? 100%?

Sure, of course. But I might reconsider the strategy. It's stupid to NOT invest, but it's equally stupid not to learn from your mistakes.

If you talk to any of the top investors who have become billionaires by investing intelligently, they'd tell you that $7000 is a small price to pay to learn, but it's a high price if you're not learning anything from your losses.

Absolutely yes as long as you understand your lesson. Most traders start from losses.