Unrealized losses can really be counted as losses in stock market dealing?

Kithsiri

Kithsiri

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Can unrealized losses really be considered as losses in stock market dealings?

godswen

godswen

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No if you not gonna sell em! Cumon! xD and given that you have not bought highly over valued shares or the company is not going bankrupt!

But there is always an opportunity cost in such cases!

Last edited by godswen on Tue Oct 25, 2011 12:29 am; edited 1 time in total

Niwa

Niwa

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Until you sell them at loss, it will not be a a loss

Soundchips

Soundchips

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I kept without selling ,that continued to increase losses. then thought of selling a portion and buying them again in Jan. that minimized to some extent. hope every thing would be green again...

Slstock

Slstock

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Soundchips wrote:I kept without selling ,that continued to increase losses. then thought of selling a portion and buying them again in Jan. that minimized to some extent. hope every thing would be green again...

Yes this is a good method to reduce losses. Specially if the share is a fundamental and you know that at some point in time it will go back to it previous high ( cannot say the same for Speculative shares which are inflated beyond all means)

sriranga

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According to investopedia

A loss that results from holding onto an asset rather than cashing it in and officially taking the loss.
Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss.

From the Accounting Point of view

UNREALIZED LOSS is a term that commonly refers to the write-down of an investment portfolio resulting from applying the lower of cost or market value on an aggregate basis. On a short-term portfolio, the unrealized loss is shown on the income statement. On a long-term portfolio, the unrealized loss is presented as a separate item in the stockholders equity section of the balance sheet.

For us are who are investing in CSE Unrealised Loss in the portfolio is a psycological factor.
(May be I'm wrong)

zen

zen

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Yes if you exclude the effect of 1.12%.

Suppose you buy a share for 10 and it goes down to 8 and then go up to 12.

Suppose you didn't sell at 8 and sold at 12. Your profit is (12-10) 2.

Again suppose you sold at 8 and bought it again at 8 and sold for 12. You have a 2 real loss and 4 real profit which means your net profit is just 2 again.

This is the theory. Apply it only if you are sure what's going to happen. I'm holding all my stocks with a total unrealised loss of 8%.

Kithsiri

Kithsiri

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Thank Guys (Gals too if any).
A few of mine too are in that territory but I am not in a hurry and willing to wait a few more months.
What do you think of NTB?
Is it worth @ 60 to pour a few thousand more ?

ShareShares

ShareShares

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what are the other good stocks to invest.?

gamaya

gamaya

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Some experts say un realised loss is almost equal to a realised one. The logic is if you short sell near the start of down trend, you have the option of buying when u judge the timing is right. Sometimes you may avoid huge losses with this method.

I lost a huge amount of money (from BFL and KGAL)because I did not know this technique.

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Unrealized losses can really be counted as losses in stock market dealing?

1 Unrealized losses can really be counted as losses in stock market dealing? Mon Oct 24, 2011 11:00 pm

Kithsiri

2 Re: Unrealized losses can really be counted as losses in stock market dealing? Mon Oct 24, 2011 11:24 pm

godswen

3 Re: Unrealized losses can really be counted as losses in stock market dealing? Tue Oct 25, 2011 12:16 am

Niwa

4 Re: Unrealized losses can really be counted as losses in stock market dealing? Tue Oct 25, 2011 8:19 am

Soundchips

5 Re: Unrealized losses can really be counted as losses in stock market dealing? Tue Oct 25, 2011 8:34 am

Slstock

6 Re: Unrealized losses can really be counted as losses in stock market dealing? Tue Oct 25, 2011 9:46 am

sriranga

7 Re: Unrealized losses can really be counted as losses in stock market dealing? Tue Oct 25, 2011 12:59 pm

zen

8 Re: Unrealized losses can really be counted as losses in stock market dealing? Tue Oct 25, 2011 1:08 pm

Kithsiri

9 Re: Unrealized losses can really be counted as losses in stock market dealing? Tue Oct 25, 2011 3:06 pm

ShareShares

10 Re: Unrealized losses can really be counted as losses in stock market dealing? Tue Oct 25, 2011 8:50 pm

gamaya

11 Re: Unrealized losses can really be counted as losses in stock market dealing?

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