I hate losses in stocks so I don't have stop-loss; but that HATE doesn't prevent me from cutting losses in stocks. Painfully, I did it a few times! Bo pian.
Stop Loss
Stop loss is when you pre-determine your own exit price to take the loss and walk away. It is just one of those bad trades and it is not that painful as the loss tends to be smaller.
Cut Loss
Cut loss is different from Stop Loss. Cut loss is when you felt so hopeless at the falling stock price and it has reached your threshold of pain. You bite your finger and sell it and move to the sideline for a while. Cut loss is usually bigger and more painful.
Read? More posts related to stop losses
When to cut losses?
When you still have some fund left to invest in other stocks; your opportunity cost for ......
