Eight Rules for Stock Investors to Break Even

by rkcms on 2008-05-09 21:05:55

■ Direct Stop-Loss Exit Method: When the stock you hold declines and you don't exit in time to stop the loss, you get trapped. However, after a comprehensive judgment, if it is determined that the stock still has room for further decline, in order to prevent further losses, you can adopt the "direct stop-loss exit" method. After making this move, don’t rush back into the market trying to recover your losses right away. You should adjust your mindset, analyze the situation clearly, and identify the best entry point before re-entering the market.

■ Bottom Replenishment (Bottom-up) Method for Unwinding Losses