Cut and run or double down?

Discussion in 'Trading' started by bookish, Jan 18, 2022.

  1. bookish

    bookish

    Im curious about your perspectives
     
  2. Market is oversold. That said, who knows when reality will come back. The market can be crazier waaaaaay longer than you can stay solvent. Or I think that is how the saying goes...
     
    bookish likes this.
  3. Tasuki

    Tasuki

    In the 1930s, economist John Maynard Keynes said: “Markets can stay irrational longer than you can stay solvent."
     
    bookish likes this.
  4. smallfil

    smallfil

    Doubling down on losing trades is a guaranteed trip to the poor house. Your smallest loss is when you exit a losing position immediately. Most losing trades do not work out and only result in larger losses. Smaller losses can be easily made up, big losses damage your capital and make it close to impossible to make up and just get to breakeven.

    https://www.investopedia.com/articles/stocks/08/capital-losses.asp
     
  5. Amen !
     
    smallfil likes this.
  6. maxinger

    maxinger



    Don't do any of those foolish things.


    Don't cut and run!!!
    Hold on to your short position.
    It might go down further. You might want to close some positions
    and take some profits.

    Don't double down!!!
    You have already missed the boat to short the market.
    Don't try to chase after the market / boat.


    Cut and run or double down
    --->
    trade and trade
     
    Last edited: Jan 19, 2022
  7. Handle123

    Handle123

    Rallies to be sold.
     
    smallfil, VicBee and comagnum like this.
  8. MrMuppet

    MrMuppet

    Always double down..always. This will ease the emotional pain of your losing position by replacing it with the emotional pain of a blown up account
     
    Collagen, FortuneTeller, Leob and 2 others like this.
  9. maxinger

    maxinger

    Good advise.
    then the trader can learn the lesson very fast.
     
  10. tomorton

    tomorton

    Do not double down. Do pyramid.
     
    #10     Jan 19, 2022