For the past two weeks, have you been cutting your losses in the stock market or you are preparing to cut losses soon and then stay sideline to wait for clearer confirmation of rebounding to re-enter. I am not sure how many of us are that technically savvy and seasoned enough now to spot that clear market reversal signal.
What looks like a Rebound may actually be a Dead Cat Bounce too.
In a full blown Bearish market, there will be several instances of Dead Cat bounces.
Cutting losses
Classic textbooks advice that you should cut your losses fast and live to fight another day. Paper losses are real and they may cause you opportunity cost in the stock market.
But, how sound are these classic advices?
Actually, it will depend who are you in the stock market and your stocks pick strategy. ......