is there any way for an investor to invest money and not experience any negative drawdown?

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newinsightfulfun

[–]C3P0 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (3 children)

  • Certificates of Deposit
  • Government-backed bonds
  • High-interest savings accounts

Expect a 1-3% rate of return.

Be weary of mortgage-backed securities. If you are investing for 10-30 years, then I recommend broad mutual funds. Never invest in stocks of your favorite company if you have zero risk tolerance.

[–][deleted]  (2 children)

[deleted]

    [–]C3P0 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

    The stated question has been answered. CDs are an investment. Clarify the question or ask a different one if you want a different answer.

    There is no free lunch, so, concerning trading stocks, you cannot trade without ever incurring a loss (unless you have some insider knowledge which then makes your trading illegal).

    [–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (5 children)

    Don't leverage too hard, only risk what you can afford to lose, know your stop ahead of time, e.g. out at 5% loss.

    [–][deleted]  (4 children)

    [deleted]

      [–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

      it sounds like you are asking how to never have a losing trade and always cover your trading fees? i don't get it.

      if your trading fees were zero you could exit on one penny of loss, rinse, repeat.

      [–][deleted]  (2 children)

      [deleted]

        [–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

        why do all trades begin negative? the only negative is the trading fee you just paid. Your first bar could be up, in which case you are profitable, again aside from trading fees. Maybe we're lost in translation because I don't know much about forex.