 |
Definition of 'Adding To A Loser'
The action of a trader/investor increasing a position in an asset when its price is heading in the direction that's opposite to what the investor/trader desires. This is generally not a wise investment decision because unless the asset begins to move in the desired direction, the investor's losses will increase.
|
 |
Investopedia explains 'Adding To A Loser'
An investor might add to a losing position instead of closing it because he or she gets emotionally attached to the asset and has a hard time accepting that it was a bad investment. Once the trade moves substantially in the wrong direction, however, it may be time to consider closing out or re-evaluating the reason for having the position rather than putting more money at risk.
|
-
Knowing whether to sell or to hold is tough. And no rule fits all. Find out what to consider.
Read More »
-
Check out some repair strategies to help boost the profit potential of a losing position.
Read More »
-
Tax-loss harvesting can help you to reduce taxes on your portfolio gains, but make sure you know the rules!
Read More »
-
|
|
