Letting go of losers
Cutting your loss can be hard but has to be done before it ruins everything. You can try to "bag-hold" or "cost-average" ad infinitum (sometimes this might even work), but you will more than likely face the point where your portfolio is wrecked.
Compare trading to relationships:
Ever had a friend or partner who, even if they were aware of their problems, refused to try or even listen? Only to drag you down into their demise, draining you of all energy because you just kept trying to help or putting up with their stuff?
When confronted they keep changing topic on you, they run away, make excuses or even block you (only to come back with more sorrow when they seem fit).
Some are just toxic, some are just really hope- or help-less... regardless .. there is no reciprocation, is the situation worth ruining yourself over it ?
So if you have a stock, commodity, asset, etc. that keeps turning against you .. why continue ?
What's the point of trying to make biased charts to try to find that little spark of hope for change?
Set rules and stick to them, makes life so much easier.
"3 strikes - you're out"
1% down ? OK .. 2% down, hm .. 3% down, BYE BYE Loser (% are examples, what percentage or strategy you choose is your problem, not mine)
little extra:
The same goes for winners, winners turn into losers faster than one imagines. Take profit in time.
The ever so often mentioned Jesse Livermore, one of the "greatest traders .. like evuh" lost his fortune several times, filed for bankruptcy several times and ultimately committed suicide, but THAT part nobody talks about.
"Life is balance of holding on and letting go."- Rumi
“Balance your thoughts with action. If you spend too much time thinking about a thing, you’ll never get it done.” - Bruce Lee
"Life is suffering. Love is the desire to see unnecessary suffering ameliorated. Truth is the handmaiden of love. Dialogue is the pathway to truth. Humility is recognition of personal insufficiency and the willingness to learn. To learn is to die voluntarily and be born again, in great ways and small. Speech must be untrammeled so that dialogue can take place; so that we can all humbly learn, so that truth can serve love, so that suffering can be ameliorated" - Jordan Peterson
Compare trading to relationships:
Ever had a friend or partner who, even if they were aware of their problems, refused to try or even listen? Only to drag you down into their demise, draining you of all energy because you just kept trying to help or putting up with their stuff?
When confronted they keep changing topic on you, they run away, make excuses or even block you (only to come back with more sorrow when they seem fit).
Some are just toxic, some are just really hope- or help-less... regardless .. there is no reciprocation, is the situation worth ruining yourself over it ?
So if you have a stock, commodity, asset, etc. that keeps turning against you .. why continue ?
What's the point of trying to make biased charts to try to find that little spark of hope for change?
Set rules and stick to them, makes life so much easier.
"3 strikes - you're out"
1% down ? OK .. 2% down, hm .. 3% down, BYE BYE Loser (% are examples, what percentage or strategy you choose is your problem, not mine)
little extra:
The same goes for winners, winners turn into losers faster than one imagines. Take profit in time.
The ever so often mentioned Jesse Livermore, one of the "greatest traders .. like evuh" lost his fortune several times, filed for bankruptcy several times and ultimately committed suicide, but THAT part nobody talks about.
"Life is balance of holding on and letting go."- Rumi
“Balance your thoughts with action. If you spend too much time thinking about a thing, you’ll never get it done.” - Bruce Lee
"Life is suffering. Love is the desire to see unnecessary suffering ameliorated. Truth is the handmaiden of love. Dialogue is the pathway to truth. Humility is recognition of personal insufficiency and the willingness to learn. To learn is to die voluntarily and be born again, in great ways and small. Speech must be untrammeled so that dialogue can take place; so that we can all humbly learn, so that truth can serve love, so that suffering can be ameliorated" - Jordan Peterson
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.