I want your personal take on when to sell, because the rationale behind each person’s decisions will always be different and that intrigues me. 🤔
Investor’s #Business Daily cites their ~Golden Rule of Selling~ by drawing a hard line “to limit their downside risk in every #trade . Cut losses in each investment at 7% to 8% or less. No questions asked. Just move on to the next trade.”
Now this certainly speaks to making sound investment decisions before you pull the trigger and #buy so you can recognize 7-8% loss being an anomaly... but it’s also a quick way for those with limited investment funds, or those who are still learning and making some mistakes, to never see recovery from unfortunate #picks .
Under this logic personally I would have had multiple situations where I’d put in (for example) $10, losing 70¢-80¢, then selling to cut my overall chance of losses by taking a certain, definite loss...
Does that not seem like a short-sighted tactic??? 🤨
IDK, maybe I’m not educated enough but I would rather put money in and let it develop over time regardless of the occasional (or even immediate) drops. What I’m here for is #gains , and frankly if we’re all following that other sage bit of investment #wisdom to “never invest what you can’t afford to lose” then it shouldn’t be such a big deal to see a 7-8% dip within a chart compared to the buy price. There should be confidence in acquisition, in holding, and in the future of the company that negates any fear around a 7-8% drop... no?
Could also be my own attempt to make myself feel better given I’m holding a few picks $COIN $TLRY $BLCT that literally cut 20% of their #value , lol. But I believe in the companies I pick! Volatility is common right now given that things are still so uncertain, but two to three years post-pandemic (which we’re still in the midst of btw) I’d expect to see many sectors rebound and become profitable once more.
That guidance by #Investors Business Daily sounds to me like cutting off your nose to spite your face... js 🤷🏻♂️
There are two investment sayings I most often repeat to myself.
One, people are pretty tired of hearing: “you only lose if you sell”. Yeah, it’s cliche and has roots in reassuring those who have made less than sound investment decisions, but it should also be complimented by another saying that people tend to agree with: “#diversify and let it ride”.
The mindset to take away is this. Invest broadly using informed decisions, and trust the choices you’ve made without obsessing over them by the hour or day or week. If you’re not a day trader, settle your anxiety and create a reminder to check your #portfolio in a week or a month. That invested money shouldn’t be pivotal to your survival or immediate needs, so why anguish instead of trusting yourself?
If you want to feel more secure and ready to react to the market, download an app to automate #price alerts at certain target prices. You can forget the portfolio fears and have confidence in only needing to act when things start trending a certain way.
Just like with social media, or anything else that we can become hooked on, it’s about healthy habits and practices to aid your mental well being... since in the end we’re all here to make money.
😱💸👈➖ 🤔 ➖👉💰🤑
What’s your strategy, cut losses or wait it out?
$SUBZ $PDT $NAKD $CLNE $BMBL $BLOK $ABNB $CUK $VACQ $XXII
Mar 30 - Jun 30, 2021BLCT14.07%COIN1.96%TLRY17.43%
BLCT
COIN
TLRY
26
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