To Hold or not to Hold

[Anaklupa]

Hi sirs,

I'm trying to do a survey on a certain question: is there such a thing as "ipit" in trading?

Let me explain further, is there such a situation wherein the price of the stock you're holding goes too far deep that it's better to hold than to cut-loss? If it goes further down, won't you lose more? If you know that the price will move back up, wouldn't it still be practical to stop the bleeding now and come back later? There's always broker commission/tax etc...but that's limited to a small percentage of the position you have while price movement doesn't limit itself to 3-5 percent.

Appreciate any input from anyone. I'd like to hear the opinion of anyone. Even new people have something new to say.

[rhipolito]

Oo nga mga sir, this happens to me often. What i do is hold kahit medyo mataas na percentage ng pagbagsak, i still hold some of my issues kahit 15percent na. Thanks mga sir.

[mikomac]

ako din! i just think that its just paper loss. parang PEP ko. haha!

[IZEE]

i think the solution is to avoid "ipits" by following your trading plan (yeah, easier said than done.. i should know )

example boss Yeahbah & Boss T....

11/06/09 FGEN Buy B: Market
S: 15.25
T: 21.25 11/06/09: Open
Breakout buy

11/05/09 BPC Buy B: 4.05
S: 3.95
T: 6.75 11/05/09: Open
Trade opens at 4.05

if the stops were followed nobody would be "ipit"

in my opinion (my opinion only), if it's already below your stop, just cut it...because letting losses run is a product of a habit IMO and habits we repeat. usually u'll get lucky and prices will bounce back...but there'll be that one time where your stock may never bounce back...this will kill your portfolio and all your hard work. it's just not worth it.

again, just my 2centavos

[okidoks]

Naalala ko na tinuro sa seminar na dapat may Stops ka na couple of flucs down.


Medyo broad rin yung tanong mo pala. Ilang percent na ba yung talo? How long na? If you're really confident that prices will go up maybe you can average down. Some people do that, some people think it's a big mistake. I haven't tried it though. Kung may time sina sir Bonner maybe you can message them the specifics baka mabigyan ka ng forecast nila and trading plan.

[rhipolito]

IZEE. Thanks. This helps a lot.

[sund3r]

to be an investor or to be a trader?

[rhipolito]

I should say , BOTH? actually i did some average down and sometimes it pays of depends on the issues and your patience. But I think average up is better.

[sund3r]

ako nung una, sabi ko sa sarili ko, mag iinvest ako. bili stocks then kakalimutan na for 3 - 5 years. tapos masaya palang magtrade kaya yun. trader at investor ako ngayon.

nagstart lang ako netong may 2009. pero ngayon ko lang naappreciate ang value ng pag cut losssssssessss.

[Anaklupa]

Salamat sa inyong lahat! All of your input would benefit me as well as any other investor or trader.

Izee, Galing! salamat sa graph. That graph plainly states that cutting loss and buying back is mathematically advantageous than holding and waiting for a bounce. It makes so much sense.

Hi Okidok, I already cut my loss at 25 percent. No more bleeding. Wish I stopped it earlier though.

Ye, I also noticed Yeahbah and Bonner cuts at 2-3 flucs down. Makes sense nga talaga.

But like you guys said, it's easier said than done. Is it pride? Faith? Dunno one thing's for sure, if it goes sour from your plan, get out and look away. Minsan kasi gusto mo balikan yung stock after a downturn. Babawi ba. lol parang pride nga.