Lately I heard a lot of cut loss.
Ideally cut loss is mainly for:
1) stop loss target hit
2) protect capital
3) swapping alternative for better gain
4) others
Anyone think of cut loss might create unnecessary loss if cut at wrong position. I tracking one fella keep on reminding cut loss and without advising what to do next. Giving an example with his 2 examples cut loss at oil n gas counters when the price drop... With crude oil price recovery it is very obvious it becomes cut loss's losses.
Did the guy understand or competent in that area before he advocate to cut? You as follower bet own risk.
cutting loss is to get out when the stock is tanking to preserve your capital.
this is also to make u feel indifferent to the stock n not form any attachments to it...means no emotional thinking dragging u down with the stock.
i seen some ppl cutting loss when buy at 1.5 last fri n cut loss at 1.4 today. that is very good.
moral of the story...do not get stuck!!!!
how to recuperate your cash is another story. even kyy is smart enuf to cut loss..he may lost few hundred k, but now with his low entry into gadang at 88+ cents? he may recoup lots now at 96.
everyone makes mistakes....but u must learn n detach from emotions...the feeling of aiya, whyla, why me, why i so unlucky...and just do it!! cut loss!! dun look back
look for opportunities elsewhere
i always say averaging down is a fool's way of unable to look past the mistakes u make in buying in the FIRST place...lol
do u know cutting loss n buying low actually makes more from just averaging down?
Cut loss more meaning if u chase high for a stock esp the stock px has gone up few hundred % like Gadang and suddenly the px goes against then u must cut lost when px fall below ur cut loss target. It is really no point talking cut loss for a stock when the downtrend is confirmed. If u choose to buy a downtrend stock and aiming for a rebound then u already know cut loss is a must when px doesn't rebound after u enter. The market already enter a bear market for so long and yet ppl still talking about cut loss. Not suprising if they still hold on the stock until today the losses likely to be huge. If u pick on any stock most of them already down easily more 70% from their low of 2008/09 or even the low of 97/98...Really make no sense of talking cut loss at this point. In fact, it is time to get ready look for market bottom within next 3-6 months...esp when US market starts to fall...the only market in the world yet to landed at Holland.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by Pierre-Simon Laplace > 2016-12-19 12:57 | Report Abuse
Lately I heard a lot of cut loss. Ideally cut loss is mainly for: 1) stop loss target hit 2) protect capital 3) swapping alternative for better gain 4) others Anyone think of cut loss might create unnecessary loss if cut at wrong position. I tracking one fella keep on reminding cut loss and without advising what to do next. Giving an example with his 2 examples cut loss at oil n gas counters when the price drop... With crude oil price recovery it is very obvious it becomes cut loss's losses. Did the guy understand or competent in that area before he advocate to cut? You as follower bet own risk.