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But the phrase “cutting your losses” has application does not? A stop loss could be set at a threshold that isn’t so tight to lose money on normal variations,
by bmitc 4y ago
But the phrase “cutting your losses” has application does not?
A stop loss could be set at a threshold that isn’t so tight to lose money on normal variations, low enough if it’s acceptable to take the loss and and capture and deploy the capital elsewhere, and not too low to never be triggered.
- baobabKoodaa 4y ago> But the phrase “cutting your losses” has application does not? A "stop loss" does not mean the same thing as "exiting a position to cut your losses". There are other ways to exit a position. If you have a large position, then exiting via market order (which is what a stop loss does) is going to give the worst possible price for your exit.