Nothing Hurts more than a bad investment
Our body is self healing to a certain extent however our financial portfolio is not.
One needs to be extra careful in putting our hard earned money into any investment.
Investment is not a gamble and hard earned money is not monopoly money so it is important to know the plus and minuses of a project or instrument one is putting our money in.
Stop loss helps
Putting a stop loss is a good way to minimize the loss in case the trade goes in the opposite direction than we had anticipated
A trailing stop loss is good to maximize profits
Setting a trailing stop loss is a good way to cash out in case there is a trend reversal.
Always set targets
Set a price target and a time horizon for your investment
This way you can sell it and take profits.
Always lock your profits
Your investment may be doing well however your profits are only on paper and do not mean anything unless you encash some part or whole of your investment.
Take aways from getting hurt
If you get hurt in sport ideally it should teach you what you did wrong and what you can do to improve your game and protect yourself in the future.
The same holds true for investments evaluate what went wrong and learn from mistakes by not repeating them.
Learning from mistakes is important
I know of a person who would run long distance however his shoes were not correct. They were fancy but they hurt him.
By changing his shoes his performance improved and his hurting foot got healed.
So those in sports should always protect themselves and wear the right gear and protective shields and equipment & gear to stay safe.