Catching falling knives is how you get bargains, Either you get a bargain or a permanent impairment. I have a rule to check in after a 10 and 20% loss to see if the thesis is still intact. If have doubts, sell, if I don’t, I will add. Even Mike Burry early on in this thread noted that stocks making new lows often fall much more. Maybe for technical reasons, but I also think it is because the majority of market participants maybe over looked something. FWIW, I did sell PSX because upon review, I didn’t not like the action in the energy markets. In other case, I continue to hold.
Looks at WHA.AS for example? Has it performed (in terms of business) like you expected when you bought it? You posted about it late last year, stock is down 50% from there, what is you plan? Did you add to your position? Why did it go down, irrational market?
You are also in GME and TLRD, which look like they have serious issues? What is the plan here?
I admit to being wrong often, but I am limiting my losses. There is no clear answer here, it overall my plan is to lose small and win big. It’s jut what works for me over time, although something I lose big too, but try to avoid it. |
