What is the psychology of "selling at the bottom" for a loss

How you should have played it in 2 parts..

1. Have a stop in place that would take you out as the market started dropping (drop was fast so may have had undesirable slippage in your fill)

2. After the "possible/apparent bottom" decide what to do next.

 

I don't think is about psychology, but knowledge, skills and mindset.
You are on the other side of those trades, because someone has to be there.

Maybe you are trading the wrong way around? Maybe what you studied, it's just retail bait?

Try to work around what you can see. Maybe enter the trade where you would have put a SL...

 

You are buying high (when a stock looks really strong) and selling low (when a stock looks really weak).

Buying strength works best in a strongly up trending stock which isn't pulling back much, general bull market conditions also help.

For a stock like AVCT it wont work, it has got a range bound chart for the last six months and is down 95% YTD.

 

I have nothing to prove, he thought I was shit talking him in his war thread against you, Dest, etc but I wasn't. it would be obvious if I was. but saying things like "only I can prove it!" is just setting up for a cycle of insanity. I have family members like this who are never satisfied no matter what you do and I can spot it a mile away.

90% sure he followed me on an alt named "diligent1" at 3:49 AM CST today. limited info on the profile too. why? lol. he's going to be thoroughly bored if he's looking for conflict. it's just as boring to me as it seems to be exciting for him.

sorry to OP for the nonsense clogging your thread. hope you've gotten some help from all the on topic replies.

 

%%
Scale out\
+finding ''the bottom'' with a rs , stop using rs. NOT likely you do that for a real long time or you could fade yourself

 

Maybe... try and distance yourself and the concept of "stop loss" from all the "bros" out there. Judge this concept on its own merits. Clearly a stop loss for every single trade is beneficial for your overall trading results. Clearly at this time in your trading journey you are confused and do not believe in that, based on false premises - your categorization of stop loss being used by unreliable trading gurus. Statistically, mathematically, stop loss is good for a trading system, regardless of who is using stop losses. Hitler probably brushed his teeth. You still have to brush your teeth.
As to the psychology of holding a loser - you don't have a process established yet. If you had one, you wouldn't "hold a loser". You would have been stopped out at a small loss. Holding a loser means you secretly bet on the loser coming back, and that is not a process or a strategy.
As to getting out at the exact bottom, that would happen way less often if you use a stop loss. Without one you are bound to throw the towel at the exact worst moment or just before that - this way you might have a slight moment of relief when the stock continues to fall and you could have lost even more. But when you look at your exit later, you again would see that you are if not exactly at the low, in fact very close to it.

 

It seems people have been conditioned not to use stops from the bubble bull market of mid 2020 to end of 2021.

If they used stops back then, they got stopped out only to see stocks race higher and higher after wards. So stops were/are seen as a negative.

Without an actual stop loss they will just manually stop out at the max pain/torture point.

And the next bull market is expected to start any day now. So the old method (no stops needed for long trades) will start working again.

 

I just had a lovely 32 minute phone call with @Baron after sending him my ID.

@margin_gamble feel free to verify this with Baron himself. You lose. You can send the $10 via Paypal to convexx@gmail.com.

no harm done.

happy Friday.

 

Give me the address. Money Order will be sent as soon as I know where to send it to