Should you hold out a loss? “The price always comes back!” some traders say. Let’s clarify right away: EDVI does not have strategies that use holding out. However, this does not mean that this method is not suitable for you personally.
Holding out is often the first toxic insight on the path of a novice trader. Like a bicycle, constant averaging is “invented” and acts as a kind of Rubicon: Held out, lost, and left? – That’s right, trading is a scam! Held out, lost, and didn’t leave? – Wow! You can dig further. And perhaps find something.
Answer the questions below honestly and count the number of positive answers.
You can hold out a losing position IF:
- You are ready to wait several years for a profit.
- The leverage as a result of holding out remains below x1 (the position does not use “borrowed” funds, no risk of liquidation).
- You are trading with personal funds, the loss of which will not affect your standard of living.
- There is no martingale (if you are averaging, you are not increasing the percentage risk per trade).
- You are hedged (have a protective hedge position in the opposite direction).
- You are only learning/engaging in trading for the first 2-3 years.
- You have a plan to close (stop-loss (real or virtual) relevant to the overall position).
If you scored 3 or more points – congratulations. We at EDVI trade do not hold out losses and always “cut” losses! You may be able to cautiously and conservatively handle this ambiguous trading technique.
