The Trauma From Cutting Losses!

The more we receive stories of traders losing money on their trades and investment ay the more na nagiging clear sa amin ang root cause ng problema.

Sa perspective ng isang objective trader ay insane yung magkaroon ng loss na over 20 percent. Having a loss over 20% involves a lot of “personal decisions” na hindi magcut ng losses.

Why?

WHY WOULD A SANE TRADER NOT CUT THEIR LOSSES?

May iilan na madali lang para sa kanila ang magcut ng losses sa trading pero most cannot do this and may reason bakit ganun.

When you cut your losses, it affects you mentally and emotionally.

Para kang nakikipagbreak sa girlfriend or boyfriend mo.

Most do not have the courage to do the breakup. Mas easy para sa kanila na magstay sa relationship kahit masakit na.

Ganyan din sa mga stocks na may malalaking losses ang trader or investor.

They would rather sit there and hope na magrecover ang stock nila na may 90% loss kesa icut ang losses nila.

Its a psychological wall na hindi nila kayang ibreakdown.

Over 90 percent of traders fail dahil hindi sila mentally and emotionally fit para sa mundo ng trading.

To me, cutting my losses is like brushing my teeth.

Hindi siya big deal. I do it often. It does not bother me.

To a lot of traders and investors, cutting their losses is like undergoing a brain surgery.

Its scary. They have nightmares about it. Its a tough decision. Sobrang daming uncertainty.

“What if after ko magcut eh magrecover?”

“Ano na gagawin ko after ko magcut?”

“Cutting my losses means realizing the loss. Mas okay sakin na paper loss lang siya.”

Hindi madali magcut ng losses but let me show you what awaits you on the other side of cutting your losses.