How To Stop Worrying And Start Living

"He asked me a few questions about how I had traded before and then told me what I believe is the most important principle in trading. He said: 'I put a stop-loss order on every market commitment I make. If I buy a stock at, say, fifty dollars a share, I immediately place a stop-loss order on it at forty-five.' That means that when and if the stock should decline as much as five points below its cost, it would be sold automatically, thereby, limiting the loss to five points.

" 'If your commitments are intelligently made in the first place,' the old master continued,

'your profits will average ten, twenty-five, or even fifty points. Consequently, by limiting your losses to five points, you can be wrong more than half of the time and still make plenty of money?'

"I adopted that principle immediately and have used it ever since. It has saved my clients and me many thousands of dollars.

"After a while I realised that the stop-loss principle could be used in other ways besides in the stock market. I began to place a stop-loss order on any and every kind of annoyance and resentment that came to me. It has worked like magic.

"For example, I often have a luncheon date with a friend who is rarely on time. In the old days, he used to keep me stewing around for half my lunch hour before he showed up.

Finally, I told him about my stop-loss orders on my worries. I said: 'Bill, my stop-loss order on waiting for you is exactly ten minutes. If you arrive more than ten minutes late, our luncheon engagement will be sold down the river-and I'll be gone.' "

Man alive! How I wish I had had the sense, years ago, to put stop-loss orders on my impatience, on my temper, on my desire for self-justification, on my regrets, and on all

?How To Stop Worrying And Start Living? By Dale Carnegie 53

my mental and emotional strains. Why didn't I have the horse sense to size up each situation that threatened to destroy my peace of mind and say to myself: "See here, Dale Carnegie, this situation is worth just so much fussing about and no more"? ... Why didn't I?

However, I must give myself credit for a little sense on one occasion, at least. And it was a serious occasion, too-a crisis in my life-a crisis when I stood watching my dreams and my plans for the future and the work of years vanish into thin air. It happened like this. In my early thirties, I had decided to spend my life writing novels. I was going to be a second Frank Norris or Jack London or Thomas Hardy. I was so in earnest that I spent two years in Europe - where I would live cheaply with dollars during the period of wild, printing-press money that followed the First World War. I spent two years there, writing my magnum opus. I called it The Blizzard.

The title was a natural, for the reception it got among publishers was as cold as any blizzard that ever howled across the plains of the Dakotas. When my literary agent told me it was worthless, that I had no gift, no talent, for fiction, my heart almost stopped. I left his office in a daze. I couldn't have been more stunned if he had hit me across the head with a club. I was stupefied. I realised that I was standing at the crossroads of life, and had to make a tremendous decision. What should I do? Which way should I turn?

Weeks passed before I came out of the daze. At that time, I had never heard of the phrase "put a stop-loss order on your worries". But as I look back now, I can see that I did just that. I wrote off my two years of sweating over that novel for just what they were worth - a noble experiment - and went forward from there. I returned to my work of organising and teaching adult-education classes, and wrote biographies in my spare time - biographies and non-fiction books such as the one you are reading now.

Am I glad now that I made that decision? Glad? Every time I think about it now I feel like dancing in the street for sheer joy! I can honestly say that I have never spent a day or an hour since, lamenting the fact that I am not another Thomas Hardy.

One night a century ago, when a screech owl was screeching in the woods along the shore of Walden Pond, Henry Thoreau dipped his goose quill into his homemade ink and wrote in his diary: "The cost of a thing is the amount of what I call life, which is required to be exchanged for it immediately or in the long run."