🧵3/10 Example of Cutting Losses: Suppose you buy a stock at $50, expecting it to rise. Instead, it drops to $45. Instead of hoping it will rebound, selling at this point might prevent further loss if the stock continues to decline. #TradingExample #InvestmentStrategies

🧵4/8 Real-World Example: Imagine considering a stock that looks great fundamentally but is hitting a technical resistance level with increasing sell volume. TA might suggest waiting for a pullback or confirming a breakout before entering. #InvestmentStrategy #TradingExample