Often we come across individuals who are holding onto positions that have been going against them and in the red for a long time. Despite bad fundamentals and price action for their positions, they will often just say that they are “long-term investors.’
But how “long-term” can one be? If a position shows no signs of recovering, it is imperative that a trader should learn how to close or at least reduce them. Having the position is an opportunity cost and the capital could be channeled to a better use in the time in which the individual refers to themselves as “long-term investors”.
Money is fungible. The need to make “back” the losses from that specific recalcitrant trade is silly. Freeing up your financial and mental capital to use on other trades with better risk vs reward profiles is often a better choice and a better path to profits.
NEA Price at posting:
$1.74 Sentiment: Sell Disclosure: Not Held
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