Under no circumstances would you plan to make an investment where the loss could equal the entire amount. For this reason, you need to have an insurance plan, loss protection strategy and exit plan in place for every investment. It is not prudent to assume that because historically something has increased in value over the long-term that history will repeat itself. Always make a personal decision and implement a plan for when, how and why you will sell your investment.

Why? While there are no guarantees, if your only plan is to hold for the long-term, you are sure to either lose money or lose sleep at some point during the life of the investment. When you decide how much you can comfortably risk losing, you maintain control over the process and confidence in your overall financial situation.