This phenomenon relates to the psychological behavior of investors when dealing with stock investments, particularly their tendencies to sell stocks at break-even points or to react to losses and gains. Below is an in-depth analysis of this behavior, touching on several psychological concepts, market dynamics, and strategies employed by investors. ### Understanding Investor Behavior #### 1. **Loss Aversion** Loss aversion is a concept from behavioral economics suggesting that people prefer avoiding losses to acquiring equivalent gains. This means the pain of losing $100 is more intense than the pleasure of gaining $100. Consequently, investors might hold onto a losing stock longer than is rational, hoping it will recover to at least the break-even point to avoid realizing a loss. #### 2. *

Yes, I have sold stock a few times at breakeven. Usually because my assumptions were wrong $Altria(MO)$ Was a good example. Nice dividend, lots of money but selling cigarettes... well it's an industry in decline long term. I got into it because I saw a huge upside selling vapes, but after a lot more research I realised vapes also have harmful consequences. The world has changed significantly but Altria hasn't. There are so many choices when it comes to investing. more often than I like I do buy a stock because I see potential, with Altria I saw the potential to leverage its supply chain a production capability to, we'll do something that has health benefits. But I quickly realised I was dreaming. So got out when the going was good. It's not always w

Great lesson for everyone on the option wheel strategy. The options wheel strategy is an income producing strategy involving selling put options, potentially owning stock, and selling covered calls until the shares are called away or the position is closed. The wheel is an increasingly popular strategy for investors that want to generate income before and possibly during stock ownership. The wheel's primary objective is not to own stock. The strategy's goal is to consistently take in credit via selling short put options. However, selling short put options prior to owning stock reduces the position’s cost basis throughout its duration. The wheel strategy can be thought of as an active approach to passive investing that allows investors to generate consistent income. It is perfect for stock

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I still remember the day I invested in what I thought was a sure-win US $Tesla Motors(TSLA)$  stock. I was convinced it would skyrocket, making me a fortune. But fate had other plans. As the months went by, my investment began to tank. I watched in horror as my portfolio dwindled, losses mounting to a staggering 50%. I couldn't bear the thought of losing even more, so I sold my shares, cutting my losses. But fate has a way of mocking us. Just a few months later, the stock began to soar, shooting up by 50% and leaving me regretful of my hasty decision. I had let fear dictate my move, and it cost me dearly. I realized that sometimes, patience and persistence are essential in investing. If only I had held on, I would have recouped my losses

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nope, as I planned to hold them for long term. this is why it's important that I invest in good companies with strong fundamentals. I will probably sell a stock when it breaks even if the company's fundamentals had changed. as it's no longer viable to hold onto such company [Sad] [Sad] [Sad] so far, haven't and need not do this and hope that I will never have to experience this [Bless] [Bless] [Bless] @koolgal @Universe宇宙 @rL @HelenJanet @SPACE ROCKET @LMSunshine

Wait to sell a stock at its break even point when there is an eruption of unconducive event such as war? But there is absolutely no guarantee that a stock will ever come back. Waiting to break even may seriously erode returns on investment. Cutting losses can be more important for long-term returns. Do not let our emotion get in the way of good judgment.  On the other hand, if a stock breaks through a key resistance level on the upside, it may signal more gains and a higher trading range for the stock, which means it is advisable to sell part of the position rather than all of it, to lock in some profits first. 

$Tesla Motors(TSLA)$ bought a very small holding in Dec 2022 at $116, to try my hand in "trading" it soon fell to $108 but rebound strong hitting $299 for a time. I sort of greedy thinking of holding for long n in the end holding for 1.5yrs till i recently sell at $237. I do believe Tesla will close at $250 till next quarterly results at least. Good luck to everyone, also thanks to Mr Musk for the recent price rise! Had a gd dinner with my little profits.

I have don't this so many times..... Keep the loosing stock despite it lost more than 50%. As soon as it reached breakeven, sold it for megre gain only to see the stock soar greater after I sold it... Did this with TSLL, ZIM, DDOG, ZS, GOOG, cRM, SE and many more. One of the main reason my portfolio never grows... Pathetic, but trying to improve the game... !!!

Sometimes i am being unfair, i can hold when red, and i started selling after it turned green with small little profits for trading $Tesla Motors(TSLA)$ but for the other stock that for long term holding i can just hold forever… 😢 $Berkshire Hathaway(BRK.B)$ $JPMorgan Equity Premium Income ETF(JEPI)$ $SPDR Portfolio S&P 500 ETF(SPLG)$ why i cant hold TESLA longer ? Can tesla be one of long term holding ?

You never hold onto a loss. Get to BE, then sell. If you make a profit after it breaks even, cool, if not, but your losses and move on. Emotions play no part in trading. It’s all about getting into a trade, reaping rewards, then getting out, for whatever time period you wish to do this over. Simple

I have been holding on to my Tesla's shares from winning 3k plus to loosing 3k plus n now winning back 2k plus.... Still holding on to them, I have faith that it will grow further!

Experience the similar trend before.  Nowadays I adjust the strategy,  sell some or full position if already registered about 3-5% unrealized profit.  Slowly accumulate profit little by little, rather than taking "escalator"ride. 

No. because if I hold the stock until it breaks even, means I intend to hold it for long term. usually I will cut loss and reinvest. that's means harder for me to hold when it drops 50%. with 50% gains, it's easier to hold. now this is not a hard and fast rule for me, but more often than not, kind of thing. for wheel, use it on a fundamentally good stock that is cyclical.

Too many times, even though I just started investing recently! I used to regret it because some of them went up again just 1 or 2 weeks later. [What] But I've also come to realise that for some other underperforming stocks, selling when they break even can be a good idea because instead of waiting and waiting for them to rise, that money could be better deployed elsewhere first! Still learning as I go along! [Cool]

I maintain a long-term perspective on my core holdings, disregarding short-term market fluctuations. Meanwhile, my satellite positions are managed with a more active approach. I realize profits when gains reach 10-15%, and implement stop-loss orders at a 10-15% downside to limit potential losses. This strategy allows me to balance risk management with opportunities for growth.

I tried the wheel strategy but it did not work well for me. I think for now I may stick to dollar cost averaging for good stocks and just stick with them