“Stop-loss is used to protect yourself if your trade goes WRONG.”
Stop-loss allows you to exit at a “price” automatically, I presumed. By setting auto-sell off at your “loss threshold price”, a price that your heart can withstand. But through my experience, I ever encountered times when you set sell at $15.00 but when the auto-sell off triggered, the price plunge into $14.50. Then it recover again. And shot all the way back to $19-$20. I am not quoting any stock but these scenarios do exist and always happen.
That’s why it is called “Stop Loss”. But there are some stocks below our buying price that we decide to hold for a longer time still.
I always believe in dollar cost average (DCA) as I’m a long term investor. I tend to hold stocks for longer period of time so they weather the ups and downs. Stop loss is pretty much not really a big thing or strategy for DCA man like me.
Why don't you sell the losing trade?
Unless it goes bust, if you never sell, technically you are only in a paper loss postion. I usually will just keep if it turns against me as long as possible or rather forever.
When will you sell?
How do you decide when it is time to take a loss on a trade?
Never. Touchwood. I do have a fair bits of those, misjudge stocks that is still way below my buying prices. Fortunately, it is a small percentage of my portfolio.
But touchwood, I still kept them until now. If you don’t sell it, it will only remains as paper loss.
$DiDi Global (Delisted)(DIDI.US)$ is one of the classic stock in my portfolio that bought it at $15+ just look at how much is it now? Some-how, i didn’t adopt to any stop-loss strategy as well and i am still doing fine.
Weather it through.
Good luck.

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