Friday, July 08, 2016
Cut Loss by Hu Li-Yang
If we do not know technical-support, it is OK ... lets say we buy at RM2 ... it dropped to RM1.80, then cut-loss triggered.
Many of us will REFUSE to cut-loss if it going lower ... and lower ... till we get STUCK.
If we do not cut-loss, our funds will be STUCK and during sales, we do not have the funds to BUY. It is called 'opportunity cost'.
He also said : Do not fall in love with stocks.
Censof ... the GST stories over, the hype of penny and ACE-rally was over ... many trapped in 2014 buying into these ... and today, if we do not put CUT LOSS ... it is trading at 18.5cents, lowest level now.
How to cut-loss?