Quote from: kolikko on April 27, 2014, 05:09:21 PM

Quote from: Jabulon on April 27, 2014, 01:26:16 PM

Any experienced stock trader knows the rule: dump your losers, play your winners hard. Noob-mind always does the opposite: cash out winners early for meagre profit, and hang on praying their losers will magically revive

This might be true in Wall Street or somewhere else where a trader has infinite or near infinite amount of money at his disposal. Bank's money or other peoples money. He can simply say oh this was a loser, dump it and increase bets next day for an another horse. If he loses again he just doubles down. Then he gets a winner and everything is fine. Every ten or twenty years it gets to the point where FED or taxpayer driven bailout is required and they will get it. Every time. And they get bonuses and paid too so it is win-win anyway win or lose. But as a private investor paying everything form your own pocket and no-one backing you up you just can't dump it all and pick up next because you go broke. Should one who bought BC at 50k now sell it all or just hold and see what happens?

It shouldn't matter if you paid 50K or 10K. The price you paid should not be a factor in your decision. The decision is simple. If you believe that prices will go up, sit tight. If, on the other hand, you believe that prices will fall, sell.

Those who are worried about how much they paid for an investment are setting themselves up to make poor decisions.

There is a saying in poker that applies well for investments of any kind (especially if you don't have unlimited funds): "Don't throw good money after bad."