Within time horizon of your investment, if the market goes up but you are bearish or the market goes down when you are bullish, what should you do? Should you change your opinion or hold on to your opinion? My suggestion is to reevaluate reason(s) for your opinion. First you should forget about your opinion. Then evaluate information that you have again including the latest one. Based on the latest information, if you should have an opinion different from the original one, then the ‘hard’ part is do you have the courage to change opinion especially if it means loss of money? On the other hand, if you still form the same opinion, then you have a dilemma : change your opinion even when you are not convinced or stick to your original opinion and suffer further loss. In this case, I would suggest the third option : lighten up on your position(s) based on your original opinion and watch the market carefully. The reason for the third option is never lose money is one of the important rules in investing.
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