Losing Your Shirt

Written By:
Paul Tracy
Updated November 11, 2020

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."