Most people hold their losing shares in the hope that these shares will return to the breakeven point, and they also sell the winning stocks early to keep the profit. Unfortunately, strong stocks usually continue to rise, and stocks that lose value continue to fall.
There are many exceptions, but in general, if you keep the winning stock positions and get rid of the losers, you will definitely see a significant improvement in the results of your investments. But most people do the opposite: when they have a winning stock, they sell it once they get a small profit, and sometimes they miss the big move. And when they have losing stocks, many tend to hold them in the hope that they will reach the breakeven point.
One of the strategies that investors use is to buy when the stock falls, in which investors buy more shares from a preferred stock when its value drops, and although this strategy may succeed sometimes, it is, in my opinion, a risky strategy; Because the stock will mostly continue to decline. And I've seen this happen with many leading stocks.
Especially technology and financial stocks that looked indomitable. In a weak, low-priced market, any share may fall. Another lesson: the stock may rise or fall to a level that you did not think could reach it.