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What is Losing Your Shirt?

Losing your shirt refers to an investment move resulting in a total loss of all financial assets.

How Does Losing Your Shirt Work?

Meant to imply a degree of loss serious enough to warrant selling the shirt off your back, 'losing your shirt' idiomatically expresses the complete loss of financial assets as a result of an unwise investment.

Why Does Losing Your Shirt Matter?

Investing in financial assets can involve serious, and for some investors dangerous, levels of risk. It is important for investors to be truthful about the level of risk they can afford to take in order to prevent 'losing their shirt.'

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.