Serious thinking. Respect the market. It is always right; and most likely you are wrong most of the time if your stocks are moving against you.The only problem you have in your mind is that the market is saying you are wrong; but you think they are wrong. Bo pian.
Learn and train your mind harder - Let it GO. Let it BE. But, don't Average Down.
When you Average Down
You are taking on higher and higher risk with a bigger and bigger holding to prove that you are still RIGHT either in your TA, FA or BOTH and the market with lots of smart investors and traders are WRONG.
So what happens now?
If you are RIGHT, you are just trying to break even first with a lower average cost i.e. trying to win back in the same manner that you have lost it.
If you are WRONG again, you have dug a bigger hole for yourself. Where is your risk control management?
When you Pyramid Up
In term of risk management, it is totally different.
If you are still right, you keep making more and more money from the market.
If unfortunately, the market is right and you are proven wrong; you can still exit the entire holding with little or no losses or even at some profit.
Risks before Profit
Always learn to train your investing mind harder to think risks before profit. I have good reason to be BIAS as I have learned the lesson through great pains. If you want to learn it through same way. Just do it lor. LOL
BTW, I have a few other BIAS too. You know. right?
Think risks before profit and sleep soundly.
Think risks before profit and sleep soundly.
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