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09-01-2015, 07:49 AM
(09-01-2015, 04:39 AM)specuvestor Wrote: I think there's some confusion between "stop loss" and "cut loss". The former is a trading discipline, the latter is to respect the market that maybe one is wrong. Both are matter of art and highly dependent on one's experience and discipline. Both are also highly dependent on your asset allocation skill. One's psyche and strategy is different when it is 1% vs 10% of portfolioi think you are right. It's very easy to use these 2 terms interchangeably. IIRC only "stop loss" is available on DIY online brokerage. Cut loss?
"Cut loss" is usually fundamental driven or sometimes respecting the unknown. Is it wise to average down in 1997 or accumulate in late 1998? Or to buy fundamentally strong stock like Satyam or Parmalet when they crashed?
As always we have to consider the downside risk and allocate accordingly to our risk appetite and conviction. If sure win then just sell everything and "hoot"
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
