How To Get Started With Investing

I recently had a reader ask if I could write about how to get started with investing, which I gladly accepted.  I love helping others, and if there's anyone reading this that is new to investing, I hope you find this useful.

Below are some tips that I believe is important if someone wants to get started with investing:

I Refuse To Sell Stocks At A Loss

In my years of investing, I have always refused to sell stocks at a loss.  Now I know some people may think this is foolish since many investors sell at a loss to harvest capital losses or to cut their losses.  Personally, I would rather hold a stock with huge unrealized losses on paper than to sell them and realize those losses as a reality.  If you don't sell the stock at a loss, you don't actually recognize the loss; you just have an unrealized loss on paper.  Once you sell it, that money is lost and gone.  I know people say you sell to cut your losses, but for me, if I'm a long term investor, then I plan on sticking around for the long haul.  Most people forget that when you purchase a stock, you are essentially purchasing a business.  Every business will have its ups and downs; you just have to be able to stick with them through the good times and the bad times.