Do not let sunk costs become a factor in deciding whether to increase your position. The more it falls, the more I buy, but the more I buy, the more I lose. Whether to add to my position can only depend on the fundamentals/narrative. Be brave to cut losses Just because you lost doesn't mean you should lower your average price to buy. If you have confidence to hold it, it will rise back. If you have no confidence, you shouldn't buy anymore. If you have strong confidence, buy in heavily. The only consideration is whether this target is good or not. Everything else is noise.
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Today's review:
Do not let sunk costs become a factor in deciding whether to increase your position.
The more it falls, the more I buy, but the more I buy, the more I lose. Whether to add to my position can only depend on the fundamentals/narrative.
Be brave to cut losses
Just because you lost doesn't mean you should lower your average price to buy.
If you have confidence to hold it, it will rise back.
If you have no confidence, you shouldn't buy anymore.
If you have strong confidence, buy in heavily.
The only consideration is whether this target is good or not.
Everything else is noise.