What Losing All His Net Worth Taught This Investor

“I had a stop-loss in place, but in hindsight that stop-loss was way too far out, causing me to lose it all,” Spargo says.

“The stop-loss should have been much closer, so if it didn’t go my way, I would make this trade much sooner.”

His capital was wiped out, in an experience he describes as “terrible”.

“I felt sick,” he said.

“That was one of the big learnings for me – have your stop-losses very, very tight so you never put yourself in a situation where you can lose more than 1% of your net worth.”

Today, Spargo’s number one rule is to diversify. It invests in all asset classes including stocks, international ETFs, real estate, bonds, real estate, speculative assets and even websites.

He is also closely watching renewable energy as an investment theme over the next decade.

“It’s a good thing. You don’t have to feel bad about putting money into this…but I also think it’s going to be a growth industry over the next ten or twenty years.

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