"d) What if you miss the boat, and now is too painful to cut, there is still a last chance where she may have a technical rebound back to 2.26 though the rebound may realize or may not realize. So, thats where the HA (Hope Analysis) come in.......;)"
Finally, today she has reached the 2.26 initial cut loss point. For a Trader who follow his/her strategy strictly, today he should cut loss at 2.26~2.27 and do not "hope" there is further upside to recover his loss. This is due to his initial trading plan has failed and he has to bear the small loss. For a trader, the strategy is to maintain cash always to fight another day by having small loss and having more than 50% success rate of overall position taken.
But for an medium term investor, one would have average down around 2.12 and wait for this rebound to check one can profit from his average price. In this circumstances, being and investor and to let him escape the pain of being actual real money loss while bearing only paper loss. Being a medium term investor, he must have enough money in his portfolio in order for him to average down (the best method is dollar cost averaging).
So, which Method you prefer ???? Again whether one is a pure trader or investor, a well trained MIND, a proper defined and back test METHOD and MONEY MANAGEMENT still applies.
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