Day 2 recap and discussion on when to sell

Deciding on whether to sell a profitable stock is like clothes you hang out to dry under the hot sun. If you suspect thunderstorm ahead, ideally you should bring in the clothes beforehand.

However, sometimes the storm clouds gather but no rain comes, thus missing out further gains.

You could bring in some clothes to lock in gains or be agile to bring in only when rain comes. But due to endowment effect, you will hesitate to bring in the clothes.

Thus, stop loss is one way to get around the endowment effect. But, what if it turns sunny again after you brought in the clothes after executing stop loss, will you be brave and agile enough to bring out the clothes?

Indeed, selling a profitable stock is very psychological challenging.