Lesson 7 - Learn to cut your losses

Down 90% is better than down 100% because at least you have funds to rebuild your wealth. Wouldn’t you agree that starting from nothing is extremely difficult? I had to learn this concept the hard way. I think it was in March, I bought 7 Thingamabobs for 38dl each. It was a smart, calculated investment as I knew Kyderby was coming (An event hosted by Aimster) meaning more Mint juleps would be released, thus as the quantity of Mint juleps increased, the demand decreased. The price of Thingamabobs, as I had predicted correctly skyrocketed in value peaking at 60dls and this is where I was a bit too greedy. I held on to my Thingamabobs believing it would continue to rise in value, however it did the complete opposite. After 1 week, the price was around 55dls. As a resilient and optimistic person, I believed once more it’ll return back to normal. This mindset of mine just kept on repeating, until finally I had released something was wrong, however I was too late. I spent hours and hours in BUYGHC trying to sell it at 40DL, but people kept low balling me offering 35 or 36. I kind of lost the motivation to play, deciding to only spend 20-30 minutes at BUYGHC trying to sell. I stupidly enough made a loss of around 50dls because I failed to understand the concept of cutting my losses. If I had been satisfied with my gains, then maybe I would’ve been 200+dls richer today.

So I urge you to not make the same mistake I had. If you like risks, at least claim some profit along the way, maybe sell half of the items you invested in, then keep the other 50% as a gamble.