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It is a technology that protects funds rather than “the act of admitting loss”. In this article, you can see why it is important to break down, judgment criteria, and practical use.

What is a break?

The loss is to sell and finalize the investment that has been lost.

In a word, it is a judgement that the wound will withdraw in shallow.

You can’t make any investment decisions. The important thing is to reduce losses when mistaken.

判断Result
損切りするLimit loss
LeavePossibility of increasing loss
NampingIncreased capital concentration risk

Why breaking is important

However, the following investment is not possible if funds are lost.

For example, if 1 million yen is 500,000 yen, you need 100% profit instead of 50%. The greater the loss, the more difficult it is to recover.

The following benefits are:

  • Protect funds
  • Prevent emotional retention
  • Turn funds into the next opportunity

On the other hand, there is aメリット.

  • You have to go up after selling
  • There is a voluntary burden of loss confirmation
  • Sales increase if the standard is ambiguous

Three criteria for loss

It is not感情, but it is decided by pre-rule.

1. Pricing

It is a method that sells when you drop by what percentage from the purchase price.

Example:

  • Short-term investment: -5 to 10%
  • Mid- to long-term investment: when the premise is broken
  • Investment Trust: Review of Asset Distribution

2. Determine why

If the reason you bought is broken, it will be sold.

Example:

  • I bought it in hope of business growth
  • However, growing dullness continued
  • Consider selling because the reason for investment disappeared

This is as important as intermediates. To see not only the price but also the prerequisite changes.

3. Decide by fund allocation

This is a way that does not collect too much funds from a single investor.

Example:

項目基準
Maximum number of symbols5 to 10% of assets
Loss Allowance1 to 2% of assets
Review FrequencyOnce a month

How to use

Please note the following before buying.

  • Why Buy
  • Where to Sell
  • How much damage is allowed?
  • What conditions can be broken?

It is not "sold technology" but "design before buying". If you think after you buy it, your will be easier.

The failure of beginners is to leave the uterus loss as "back". Failure of intermediates is that the confidence of the investment is delayed.

  • Risk management to protect funds
  • Make a standard for price, reason, and money distribution
  • It is important to decide the exit before buying.
  • When you get lost, check whether the initial premise is affected

Let’s make a break memo by one line before investing.

This article is for educational and informational purposes only, based on public information. It is not a recommendation or solicitation to buy or sell any specific security or financial product. Although care is taken with accuracy, the content and future investment outcomes are not guaranteed. Final investment decisions should be made at your own judgment and responsibility.