Asked 2w ago
I think knowing when to let go and when to withstand paper losses is very hard to judge.
For sure. Knowing when to buy is based on facts and valuation, that's easy compared to when to sell/continue holding because now it becomes future expectations vs opportunity cost vs emotions. This is not to say selling/holding are not based on facts and valuation, but due to loss aversion, we value losses twice as much as gains, hence heavier weightage on the latter factors. Not so easy anymore.
Yes I do. Bought ESR REIT like a week before Covid. Still in the red. SIA was in the red for a couple of months till recently due to the vaccine news.
I am keeping these stocks around as I believe there is a chance for growth to return back to its original pricing. If you believe in the stocks you buy, it's only a paper loss to you. I will only sell a losing stock if I have no confidence in the stock where their business models do not align with me. I can use that money to invest in something else to earn back my losses.
I currently don't have one as I have previously sold about 2 of them because I do not have conviction in them and I found opportunities for me to re-deploy that money into a stock I was looking at.
Only hold a stock if you have conviction in it instead of 'hoping' the share price will increase.
Because bought high since I DCA.