Mitigating the severity of losses is very important for retail investors. This is because recouping losses is extremely difficult as the percentage of loss becomes higher. For example, to recover or break even from a loss of 50% one would need to make a gain of 100% which is not easy by any means. From …

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When stocks fall dramatically on one day the short-term losses can be scary.However the losses are wiped out and investors tend to earn a positive return over the following years. According to research by Schroders, the S&P 500 has delivered on an average 13.6% return annually in the five years following the worst ten days. …

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