Cut losses fast and live to fight another day! It could be true for trading for a living as they depend on cash flow to put food on the table. But; for retail investors who put food on the table from their earned income ; it is a different story! Depending on who you ask? Cut losses fast and live to fight ANOTHER day! For traders, they have to fight every other day and definitely have to fight another day; otherwise they will starve! But; for retail investors over market cycles and sector; how true is cutting losses into holding MORE cash when you have war chest? Do you have to live and fight another day? or every other day? It is more likely when retail investors panic and cut losses into holding MORE CASH; they are more likely to stay away from the market for a long time. Once we cut losses into realized losses; it is very hard to recover by holding cash. We can't never recover from holding cash. The cash has to be invested again to recover from losses. But; what Uncle8888 has observed so far that many retail investors after cut losses; they will stay away from the market far too long to recover.
Last updated : 14 Sep 2019
I am 63 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 20 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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