When is the Right Time to Cutloss Stocks?

 

Source: pexels.com

'I'm still stuck in stock A, I want to cut loss, it's a shame. Will rise again later

Have you ever heard of something like that? Or maybe you yourself are like that?
Careful! If we keep stocks that are in a downward trending phase and we don't cut losses immediately, the losses we experience will be even greater.

"But a loss isn't considered a loss if we haven't sold the shares?" Yes, it is true.
But this concept can also be very dangerous.

Instead we hope that the stock will rebound and can be sold, but instead it continues to fall.
So we can't focus and gain the momentum of other uptrend stocks.

Here we provide 3 cutloss methods that you can use:

1. Break Trendline

When you buy a stock and suddenly the stock price fails to stay above the trendline, then your trading plan is to sell with whatever your profit conditions are.

2. Break Moving Average

Here you can use the MA200. Why does it have to be MA200? Because this area is a long-term psychological support area. Because stocks that are below the MA200 will find it difficult to move uptrend. So if your stock is below the MA200 it should be sold. The point is don't let you keep stocks that are below the MA200.

3. Break Support Fractal

This is the method we always use. Why? Because fractals are the closest support level to the stock price you have. So before he penetrates the trendline or MA200, he usually penetrates the fractal level first.

So for you traders, cut loss is very mandatory. Remember! before you dive into the world of trading, you must have good risk management (Cutloss) and do it with discipline.

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