RE: UK needs Oil and Gas...28 Jul 2021 18:25
You can reduce the percentage of a loss.
But people fool themselves into thinking that's reducing the loss, when actually they're having to risk more and potentially increase their loss.
It depends what happens to the share price afterwards.
If it goes up, that will reduce the loss in fact.
If it keeps sliding, the total loss increases, while the loss ratio (percentage) may appear smaller, if the speed of that slide decreases.
Investors need to watch the total investment amount and the percentages and understand their relationship.