You're definitely right. I may not have been in the stock market for 25, 15 or 10 years, but I too have realized how important it is to be disciplined when it comes to investments. Be it in one direction, but also in the other. It is important to act unemotionally and rationally. If a share is down 30-70%, there is a reason for it. Although interim corrections are normal, it is important to admit to yourself that you simply made the wrong decision and simply made the wrong investment. But simply sitting there and HOPING that the share will rise again is pointless. But it also depends on the share. A good example is $QNC. The share was down 80% for me. A good 1 1/2 months later it was up 20%. Why? Because it is a penny stock. But let's not talk about penny stocks or derivatives, but about mid- and large-cap. Stocks, an 80% drop is not without reason. Then, as you have already mentioned, to think "Yes, it will go up again" is weak in my opinion. At this point, you have to ask yourself what else you could have done with the remaining money. Other investments? Use it privately for consumer goods? Instead, just let it run and hope, is sometimes the better decision, but in the rarest of cases.
On the other hand, this also applies to profits. If a share is up 100% or even "only" 30%, you may be richer on paper, but in reality you will only be richer if you sell and take the profit. I often catch myself doing that too. Let's be honest. How often do you buy or sell shares at the perfect time, just before the turnaround? Almost never. So it's okay to take profits from time to time, even if the share still makes its 10-20% afterwards. But I think it's wrong not to sell simply out of FOMO.
On the other hand, this also applies to profits. If a share is up 100% or even "only" 30%, you may be richer on paper, but in reality you will only be richer if you sell and take the profit. I often catch myself doing that too. Let's be honest. How often do you buy or sell shares at the perfect time, just before the turnaround? Almost never. So it's okay to take profits from time to time, even if the share still makes its 10-20% afterwards. But I think it's wrong not to sell simply out of FOMO.
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@der_Don Of course you should also take profits from time to time. I do that too. I'd rather take 5x200% than wait years for a tenbagger.
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