Lost 30% on Stocks and My Mental State Is Wrecked
I put in 20 million won last year, and now it's down to 14 million. Bought Tesla and NVIDIA, and they both tanked. I know it's supposed to be long-term investing, but seeing red every day is really tough. How do you all decide when to cut losses? Or should I just hold on?
7 answers
I cut my losses in a similar situation last year and ended up regretting it because prices went up later. But that was also partly luck... If you have extra cash right now, averaging down could be an option. Just don't overdo it.
Knowing when to cut losses is really a tough issue. Personally, I set a rule to always cut losses at -15%. Making emotional decisions often leads to bigger losses. I think it's a good idea to establish a strategy now, even at this point.
I've had a similar experience. I bought Tesla at 300, and when it dropped to 180, I lost my cool. It's recovered a bit now. Holding on with faith in long-term investing is one approach, but if it's too tough, consider cutting some losses and increasing your cash position.
Whether to hold or cut losses depends on the stock, but I think Tesla and NVIDIA are companies worth considering for the long term. However, if your entry price was too high, it might be better to wait rather than averaging down. I've also held through a -30% loss before, and time heals.
Did you not diversify your investments? Putting all 2,000 into Tesla and Nvidia might have been a bit risky. I’d recommend splitting into ETFs or other stocks even now, if only for your peace of mind.
I disagree. -30% is already too late to cut losses. I think it's better to close out before it drops further and look for other opportunities. Many people end up with bigger losses because they're fooled by the 'HODL' mentality.
Here's a tip for managing your stock market mentality: don't check your portfolio every day—only look at it once every three months. I've found that doing this reduces stress. If you're a long-term investor, there's no need to check more often. Hang in there!