Why Would a Trader Hold on to a Stock with Over 70 Percent Loss?

The most logical thing to do is cut your losses nung small pa lang sila yet you often see a lot of huge losses na hawak-hawak pa din ng traders.

Why?

We had a great discussion about this during one of our live sessions.

A trader can have a great trading plan.

May mga maayos na risk management. May mga maayos na checklist.

Everything can be perfect but the moment na may money involved na ay nag-iiba na ang action sa planned trade.

Emotions come in once money is involved.

Mahirap mgcut ng losses. Mas madaling hayaan na lang ang loss at maghope na makarecover.

Cutting your losses involves admission na mali ang analysis mo compared sa outcome na bigay ni market.

Yung idea na mawawalan ka ng pera sa lugar kung saan pinasok mo para magkapera ka at yumaman ay sobrang stressful at nakakapanliit.

Traders hold on to huge losses because that’s the easier option.

Hindi mo kailangan iadmit na mali ang analysis mo.

Hindi mo kailangan iyakan ang nawalang pera kasi “paper loss” pa lang siya kapag hindi mo nacut.

It takes a lot of courage, humility and self-awareness para magcut ng losses.

The best thing naman about cutting your losses ay learnable skill siya.

May mga tamang methods at approach to execute a proper cutting of losses.

Once nalearn mo ito ay forever ka nang hindi makakatikim ng mga huge losses.

Join us sa Trade Management Bootcamp and we will show you tactics, techniques and methods kung paano makapagcut ng losses effectively at paano mahandle ang emotions mo para hindi nito masira ang trading career mo.

This weekend na ito.