In the field of investment, the vast majority of people face a serious problem — procrastinating on stop-loss.
From my observation, nearly 99% of investors find it difficult to escape this deadly trap.
Taking the cryptocurrency market as an example, when the price begins to fall, many investors comfort themselves, thinking it is just a normal correction, hoping to sell after a price rebound. Thus, when there is a slight rebound, they hesitate whether to take action; when the price falls again, they feel reluctant; then when there is a slight recovery, they think it hasn't reached the cost line and decide to wait a bit longer. In this cycle of indecision, profits disappear, and even the principal begins to suffer.
This is undoubtedly a major taboo in investing. Investing is like a battle; not knowing when to cut losses is like a soldier on the battlefield who doesn't know when to retreat. A significant mistake can render all previous efforts futile.
In contrast, successful investment moguls have a notable characteristic: once they sense that the market situation is unfavorable, they decisively cut losses, acknowledge their judgment errors, rapidly adjust their investment strategies, and reallocate their assets. When I invest, aside from projects with long-term value, I always set clear stop-loss points before placing orders. This is not pessimism but a rational action in investment. Investing is a long game, and only by learning to protect oneself can one survive in the ever-changing market.
So, here’s a suggestion: before entering the market each time, make a stop-loss plan. Don’t wait until you suffer heavy losses to regret it. Remember, excellent investors know to prepare for the worst rather than waiting until failure to find ways to remedy the situation. Let’s work together to become rational investors and safeguard our wealth.