For beginners, cutting losses can be difficult, right?
In the beginning, there are quite a few people who can't cut losses, right?
I myself have had the same experience. If you continue to face that failure, you will definitely overcome it in the future.
The first stocks purchased, the subsequent decline right after purchase, rebounded the next day after selling. What is the cause of such an experience holding one back?
After experiencing that, I thought it might rebound, so I kept holding it, but it kept dropping, my mental state couldn't take it, eventually left it hanging, couldn't endure, cut losses, big loss. ←This is important。
But there is resistance here again.
Even though I thought about selling when it came back, it still hasn't returned.
Next, there is a part of me that thinks about selling if it at least returns to the original stock price, and thinking that means there is a part of me predicting it will rise.
In other words, this might be the lowest price. If you are making predictions that it will rise, consider increasing your buy orders.
By increasing your purchase orders, you can lower the average acquisition cost. Even if you bought shares at 100 yen each, if you enter the next at 50 yen, the average cost becomes 75 yen. This allows you to lower the line where you say you will sell when it returns. This is called averaging down.
But even if you average down, if it continues to drop, endure, and sell.←This is important
In the end,Trading based on emotions and mental states often leads to poor outcomes.It is easy to become a bad result.
Traders and institutions come to hunt rabbits with all their might.
This is importantProfessionals are targeting places where it is written,
Rather than holding your ground or adding to your position there, please try not to be taken all the way there.
Cutting losses is not something to be ashamed of. If the losses are too large, it's game over.
Because it ultimately leads to exiting the stock market.
Even if you read this and understand, there may still be people who do the same thing, but that too is a very important and valuable experience.
Do not neglect financial management and continue to stay in the market.
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