DARE TO CUT LOSS

"I can't stand seeing there's red ink in the income column," a diva shudder in an interview. "I am a taurus, anteng will react with the color red," sambungnya. "If I see red, I'll sell my stock as soon as possible."

Barbra Streisand

Have you ever found a motorist who never suffered a deflated tire during his life. Syangnya, you are definitely harder to find the luky man like that. Begtu also in stock trading, no investor is always good thing all his life. If he's successful, certainly less of a disadvantage keuntungannnya.

Even if often Fortunately, one of their flagship strategy is to cut loss, daring cuts losses so that losses are not getting in. Cut loss strategy becomes effective when market conditions are bearish or crash.

Cut loss is the hardest decisions because you have to realize a loss. Imagine if a stock crashes, the stock price dropped sejadinya and you are dealing with the situation are still holding stocks that join the avalanche or take it off. Instinctively You not bear saw money fly away. But that's the quick decisions you have to take so that losses would be minimized and you can be agile, open a new position.

You have to be realistic to realize that decision cut loss also applies to shares of big caps that have strong fundamentals. Although stocks of big caps is relatively faster than puling the small caps, but still long.

Many investors who just realize a profit only a few points, but have to bear huge losses as prices continue to fall and left. investors feel that the market is not fair. Although, there are also investors who do not pedulidengan fluctuations in stock prices. Prefer hold, wait and see, while doing averaging down, this step is quite effective if the drop in stock prices was not because of the crisis or the recession.

TIPS CUT LOSS:

1. You must always observe the world and regional economic development, world energy price movements, komodiatas, gold, interest rates, unemployment, economic crisis, and is sensitive to the political situation. Anjloknya stock indices Dow Jones, Nikkei, Hang Seng, Kospi become alert signal for you to cut loss. Even if you are quite busy, you can monitor through a broker you trust.

2. You are also obliged to observe, if the cause of the decline in stock prices would affect the company's fundamentals in the long term such as hiangnya a monopoly price reductions, market interest rates rise, the drop in sales or earnings, and ersolan of the law. Dare to cut loss and move the other stocks being portofolioke the right decision.

3. Decrease of JCI will also depress stock prices bigcaps. When trending down continues, do cut loss and wait! Buy back in when the price of termurahnya.

4. Dare cut stock loss to the Recycle Bin, the only stock that has possess signal to continue to grow.

5. For tektok trader, reasonably price drop due to profit taking action with a bold cut loss and open a new position when the rates are cheap (touching the line support)

6. Be careful of red friday, usually the Exchange met profit taking sentiment, to anticipate the uncertainty of the market during the holidays.

7. Decision cut loss is very heavy, but turned into a relief because stock investors avoid nyangkut.

8. Dont be panic! Just cut the loss ...