It is foolhardy to make a second trade, if your first…
“It is foolhardy to make a second trade, if your first trade shows you a loss. Never average losses. Let this thought be written indelibly upon your mind.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The advice warns against averaging down losing trades, urging traders to cut losses quickly.
In simple terms: Don’t add to losing trades.
Key Takeaway
Cut losses, protect capital.
Themes
finance
risk management
trading
Mood
cautious
pragmatic
Type
financial
advice
When to use this quote
- stock trading
- personal finance
- investment strategy
Key Concepts
loss aversion
position sizing
discipline
Questions to Reflect On
- What strategies help you exit losing positions?
- How do emotions influence loss handling?
A Different Perspective
Market volatility can make timing cuts hard.