“Don’t Sit On Losses: How This Simple Rule Spared Investors From Meta’s 77% Crash”
May 14, 2024
“Sitting on losses is never a good strategy because those losses can pile very quickly. Even strong stocks can dive and give up all gains from a buy point in a single session. That is why watching for sell signals and knowing how to sell stocks is vital to investing…”
The article goes on to talk about how Meta crashed. I agree with refusing to sit on losses but this is more of a day trade mentality. People who dollar cost average most likely wont track the markets as close as day traders. That means they’re less likely to avoid major crashes.
When Dollar cost averaging into stocks the majority of fluctuations can be ignored. This article however is more of an extreme case. Extreme cases like this, a 77% crash, can’t be ignored. Even if you’re dollar cost averaging a crash that big should be avoided if possible.
Long story short even if someone is investing long term its better to track their investments daily. Being lazy is never a good option.