Aug 26, 2016

Cory Diary : Cut Loss , Part Two

Has been holding this post in draft bucket for more than 2 weeks. Putting numbers to simulate scenarios on price going down trend. The figures are arbitrary. Is not meant to encourage anyone to cut loss on any particular stock. Is meant to educate myself on risk management.

B - Buy , S - Sell

Cutting loss at one go as in scenario 1 , 2 and 3 at different price points. Losses ballooned.
How about staggered loss in Scenario 4. Almost Scenario 2 except you get to see $13 price range.

Feeling Rich not to cut loss and instead average down at different stages in scenario 5. Ended up with 20 Lots with -$33.5 K loss and 300 K asset stuck.

When market knifed, a number freeze. Some choose not to cut loss even when they know is coming. They are the "Heroes".  A number even average down till no bullets. For the timid me now, I will cut if fundamental is against me, and not how deep my pocket is. And buy back at my terms.

Who are you ?



  1. If stock fundamental is still there, we should average down. If fundamental is no longer there, we should cut loss and move on.

    1. True. Often conclusion of the fundamental is subjective. 6 years ago, people in the market swear by Cosco as different breed when other S-chip are falling. Where is it now ? Many things not rocket science.

  2. It's a Head you win, Tail I lose. No way out.
    And you wonder why you need to go through all these troubles to lose money.

    1. Not sure how to call you. I think is important Not to fall in love with our stock. Let go when we have to.

  3. Hello ,
    Am Mrs Cynthia corvin . Am a lady with a great testimony I live in USA and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave happiness to me and my family, i was in need of a loan of $360,000.00 to start my life all over as i am a mother with 2 kids I met this honest and GOD fearing man loan lender that help me with a loan of $360,000.0.Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs cynthia corvin, that refer you to him. contact Mr.Zak,via email:-