Just a little something I've been wanting to mention for months now:
I always follow a system and sell at a loss if the system calls for it. We have to know that every trade won't be a winner. So why sweat a loss? Some become long-term investors...holding on to a losing trade. Others 'double down' at 'better' prices. Developing and FOLLOWING a system that one is comfortable with really helps.
If I ever get felted, it'll be because I traded poorly--until the bitter end; not because I became an investor to avoid selling at a loss, and ultimately, watched a stock fall until it was delisted, etc.
One can hold on to a losing trade for a year to finally and proudly exit at a profit. However, I believe it would have been more profitable to take the loss a year ago and trade for that whole year rather than leaving money tied up in a losing trade. This concepts escapes a lot of folks, strangely.
All of this, of course, assumes the use of a system that works. One shouldn't be trading unless their system has shown to be a working one--either through paper trading or proper backtesting.
Finally, regarding 'doubling' down:
Martingale Systems and Why They Dont Work In Stock Trading
If a system gives another buy signal after the initial trade lost ground, is it then ok to 'double' down?
Depends upon your money management scheme. One would be 'doubling' their exposure and risk...so...maybe.
...IMO
Good luck during these rough waters!
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Disclaimer: I am far from an expert!
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