The first half of this story is totally unrelated to investing, but I promise you, I will relate the second half of this post to investing.
I was reading Pat Flynn’s recent October blog report, and he mentioned a WordPress plugin called “Limit Login Attempts”. This tool shows you the number of jerks and hackers that attempt to login to your site. It also shows you the IP address of the hackers, and allows you to lock them out. So here’s the image of the number of hackers who tried to log in to Pat’s blog.
Pretty scary, isn’t it?
So that got me thinking, and I decided to install “Limit Login Attempts” to this blog too, in case someone tried to hack in. And in just a day, this happened.
Who the hell would want to hack into my blog? Investorz Blog isn’t even that big! I mean, I would understand why someone would want to hack into Pat Flynn’s SmartPassiveIncome blog, because it’s huge. But my blog certainly isn’t. Anyways, just comes to show that you got to be careful.
I’ve also decided to buy BackupBuddy. It’s a great WordPress plugin that backs up your site, in case something happens to it (e.g. someone hacks in and destroys everything). So in the event some jackass hacks into my blog and wipes out everything, I still got a backup option.
So how does this relate to investing?
Simply put, you need a backup plan. In the event that something unforseeable goes wrong, you need to cut your losses, and stem the blood flow. That is why stop loss orders are important! It’s impossible to foresee everything, and certainly, God will send some random harm along your way. In the event that some unpredictable market event forces prices to go against your position, a stop loss order will quickly cut your losses. Don’t sit their like a stupid duck waiting to get killed.