When do you cut your loss?

' When do you cut your loss ? '
when the Incorrect signal is hit — which should be known in advance of opening a trade

some method is employed that produces a B/S signal
the method includes a signal that the original B/S signal is Incorrect

theoretically every trade will be correct — one wouldn't use a loosing method
an Incorrect signal may be price based or in part price based, but may also be based
on fibo, Gann, S/R etc lines for instance and/or time, combinations of, the release of
economic etc reports, EW etc theories

a confirmed Incorrect signal means one exits the trade or,
reverses the trade after establishing what the Incorrect signal is for that trade

the $ or % amount of the StopLoss from Incorrect signals may be arbitrary, different
for each trade, some methods may use a fixed $ % amount

price (profit) targets may be included in the method

 

Name an example please?

 

When the fundamentals change or the business changes in a way that isn't favorable. This is a very broad question.

With options though cutting losses is pretty much futile.

 

So did you ever sell your holdings due to some unfavorable change?

 

I ditched the GS and lessened some aapl awhile ago. GS wasn't doing anything and AAPL was sold to free up money. Also sold off MA cause it wasn't performing.

Try to keep some money on the sides to buy call options on FXI and EWZ on the dips (which I have already made a lot off already). I bought calls on EWZ when it traded at $58 and rec'd here. Yea...add another 24 bucks to that since it trades at over 80.