InvestorQ : Is it true that I must hold on to winners and rush out of losing stocks?
Tisha Malhotra made post

Is it true that I must hold on to winners and rush out of losing stocks?

Answer
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2 years ago


A lot of people tend to misunderstand the concept of long term investing. It does not mean that you should hold on to losing stocks. At the end of the day your capital is finite so make the best use of it. As a trader in the market the natural tendency is to take profits at the slightest opportunity. Unfortunately, there is also a tendency to hold on to losing propositions. In fact, we aggravate matters by adding on to our losing positions. No trader can get it right all the time. The trick therefore lies in holding on long enough to your winning trades and cutting short your losing trades quickly in the market. If you look at the best of investors, then ensure that they hold on to their winning positions long enough