The most difficult question to answer when investing or speculating is this: When to get out? The answer to that question, regardless if you are exiting the market with a profit or a loss is the same. There is no answer to that question. Getting out of any market position, liquidating down to the sleeping point is a personal matter plain and simple. Again, there is no pat answer as to when to exit an open market position.
Honestly, I am asked that question daily and I mean daily. “Should I get out and take the loss? Should I get out and take the profit? My answer is always the same. I say, “You either get out or sit tight. You cannot do both. And I cannot answer your question!”
More often than not, however, I reply to that question by saying, “Hey, you know how you make big money in the marketplace? They usually answer by quickly saying, “How can I do that? I say, “By being stubborn.” And without fail I go on to say, “Do you know how to lose big money in the marketplace?” They usually answer just quickly by saying, “How does that happen?” Again and without fail I say, “By being stubborn!”
There you have it. There is no easy answer telling an investor or trader when to exit a trade that has profits or a loss. When investing or speculating the greatest amount of money to be made is by being stubborn. By the same token, the greatest amount of money to be lost is by being stubborn.