PLTR과 RGTI 투자 손실로 배운 집착과 확신의 경계 🧐

Dont ever let a position build up like that! They want you to hold it! Then the person who sold it to you originally, can buy it back cheap as fuck when all your liquidity is locked up.

Rule number one : Make your positions so small you dont care if you lose 100% of it.

Rule number two : The second you start to worry about a position going the wrong way, close it.

Rule number three : read rules 1 and 2 again.

You can use different methods depending on the situation and needs of the particular stock. I'll use trailing stop losses for a % once a stock keeps running up. Once it's up say 25%+ I'll put a trailing stop loss on it at 10%. If it keeps going and I expect some movement I might switch it to a 15% or 20% trailing stop loss.

This way you can still try to sell at the top manually if you want but it protects you from yourself, from doing exactly what you did.

You can also do a regular stop loss. But generally the idea here is to use these to take the guesswork out of it. You made the right call, you just held too long or need to wait for it to go back up but most day traders will just cut a loser quickly so you don't need to hold a bad stock that might never go up again