RE: Red Braces Brigade14 Sep 2021 22:33
N.. advice on trading out of a losing position? If there is perfect answer then I don't know what it is. T and I have covered these strategies before. T has explained his well and I can't really disagree with him. I trade differently and find it exceedingly hard to sell at a loss although I have done it a few times to get some money into play to try and make a profit somehow.
It's Murphy's law of course but the moment one sells a share it goes up! So what can one do? What I do is to take a view on a shares prospects (and also it's prospects to change within a small timescale) and trade accordingly. For example if I have confidence a share price will recover in say, 10 days to weeks, I would sell ( at a loss) to use the funds elsewhere. However, I would only sell a proportion of my holding for FOMO reasons as T said. The proportion I would sell depends on my current view of that shares prospects. Of course if one only holds a comparative low value (share price x number of shares), it may not be worth while to split a holding.
Generally I agree with T, keep trading rather than waiting a long time for a share to recover. I havent been trading for maybe three months now and I haven't been making any money, if fact, the value of my holdings have been drifting down. I will get back to some active trading but not quite yet. I did sell about 30% of my ARB (at a loss) just before the bell today but I expect to be buying them back tomorrow morning (fingers crossed).
I am going back to France on 24th Sept, so think of me enjoying myself!
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