Read? Investing Made Simple by Uncle8888 (17)
In Investing, Control Risk is NOT a Choice
In investing, control risk is NOT a choice; but a strict requirement to survive in the Law of Jungle in the stock market. You MUST have adequate investing capital to come back when you have fall in the stock market. But, you don't need to win back in the same manner as you have lost it. Uncle8888 has personally tested it in the last Great Bear 2008/09 and it works.
As small retail investors who have limited time and resources to analyze the companies like institutions. You also don't have access to management to have greater insight on their recent business operating environment and challenges. You must never be mistaken on this. When institutions or big boys cut losses and reduce exposures to a stock; they will certainly do it with their eyes wide open. ......