InvestorQ : Holding winners and dumping losers: why is it so critical?
Moii Chavate made post

Holding winners and dumping losers: why is it so critical?

Answer
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Dia Deshpande answered.
2 years ago


At the end of the day, we all trade with finite capital. It is also true that more often than not, you will get your calls on the market wrong. Therefore, the only way you can make money in the market is by cutting your losers quickly and holding your winners long enough. It does not really matter how often you are right and how often you are wrong. What matters is what you do when you are right and what exactly you do when you are wrong. That makes all the difference to your investment performance!