Cutting losses, and that too as quickly as possible is a learning on investment journey. I used to be slow to take losses and often took hits of nearly 20-40% on my positions. But during Covid crash, I somehow managed to exit extremely quickly during the first phase of fall itself and that helped me get over the mental block of booking losses quickly
Usually whenever you are attempting something new, first couple of times, its difficult, but once you start doing it regularly and start seeing the results, it becomes second nature.
The only drawback to this strategy is that sometimes after your quick exit in any position, the stock price will start moving up and often with vengeance. We have to learn to make peace with this kind of scenario. That too comes with experience. This kind of stuff has to be taken philosophically. You cannot win them all. You win some, you lose some. But whenever you are in a winning position, make sure to make the most of it.
| Subscribe To Our Free Newsletter |
