Comments on: Why I Don’t Plan On Ever Taking A Loss http://www.thebeststocktradingintheworld.com/2007/10/why-i-dont-plan-on-ever-taking-loss.html A guide to trading stocks online Sat, 31 Jul 2010 16:15:48 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: bzak http://www.thebeststocktradingintheworld.com/2007/10/why-i-dont-plan-on-ever-taking-loss.html/comment-page-1#comment-46 bzak Mon, 08 Oct 2007 01:44:00 +0000 http://www.thebeststocktradingintheworld.com/?p=45#comment-46 You aren't going to limit your losses by not taking them. A loss is a loss, whether you realize it or not. You can't gaurentee that the price will ever go up again.<br/><br/>There is a difference between being displined and being in denial when it comes to not taking a loss. Chances are you will be in denial, if you say "I Don’t Plan On Ever Taking A Loss" You aren’t going to limit your losses by not taking them. A loss is a loss, whether you realize it or not. You can’t gaurentee that the price will ever go up again.

There is a difference between being displined and being in denial when it comes to not taking a loss. Chances are you will be in denial, if you say “I Don’t Plan On Ever Taking A Loss”

]]> By: Dereck http://www.thebeststocktradingintheworld.com/2007/10/why-i-dont-plan-on-ever-taking-loss.html/comment-page-1#comment-45 Dereck Sat, 06 Oct 2007 13:10:00 +0000 http://www.thebeststocktradingintheworld.com/?p=45#comment-45 zlatko, <br/>thank you for posting a comment. Never heard of it before your mention of it here. Should I have? Let me go do some more research, and I'll respond more aptly to your comment shortly. zlatko,
thank you for posting a comment. Never heard of it before your mention of it here. Should I have? Let me go do some more research, and I’ll respond more aptly to your comment shortly.

]]> By: Zlatko http://www.thebeststocktradingintheworld.com/2007/10/why-i-dont-plan-on-ever-taking-loss.html/comment-page-1#comment-44 Zlatko Sat, 06 Oct 2007 08:48:00 +0000 http://www.thebeststocktradingintheworld.com/?p=45#comment-44 I take it you're familiar with Prospect Theory?<br/><br/>For the uninitated, it says that a great loss hurts more than an equally great gain helps, and the theory can be summed up in this figure:<br/><br/>http://upload.wikimedia.org/wikipedia/en/4/4e/Valuefun.jpg<br/><br/>I think that's why people are so occupied with limiting their losses while they are still small and taking gains quickly. I take it you’re familiar with Prospect Theory?

For the uninitated, it says that a great loss hurts more than an equally great gain helps, and the theory can be summed up in this figure:

http://upload.wikimedia.org/wikipedia/en/4/4e/Valuefun.jpg

I think that’s why people are so occupied with limiting their losses while they are still small and taking gains quickly.

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