Break even
The point where you have made back everything you lost, so your total profit is exactly zero.
In plain English
If you bought at $100 and the price fell to $60, you break even when it gets back to $100 (plus costs).
Uncle Gary explains
Uncle Gary bought at the top in 2007. 'I'm not selling until I break even,' he said. He is still saying it. Waiting to break even is how a short trade turns into a lifelong relationship.
Why it matters for your money
The market does not know or care what price you paid. Holding a loser only because you want to break even is a feeling, not a strategy.
Where we tested it
- Does the Golden Cross Work? We Tested 72 Strategies
- The Sunk Cost Fallacy: Gary's Camper Van Will Pay for Itself
Related terms
All glossary terms. Educational content, not financial advice.