The Worst Trade Mistake: Never Add to a Losing Trade

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Never, ever add to losing trades. You know, 
there’s a reason the trade is going against  

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you. You’re wrong. I mean, it’s all there 
is to say. You need to exit that trade  

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and look for re-entry. And don’t ever say 
to yourself, it can’t go higher. I mean,  

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it can’t go higher or can’t go lower. For 
anybody who says it can’t go higher, put  

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a chart of DRYS next to your computer from last 
November. For anyone that says it can’t go lower.

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Put a chart of DRYS next to your computer from, 
you know, November 15th to, you know, a few weeks  

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ago. It’s down 99.99%. You know, there’s probably 
a hedge fund manager out there. A few years ago,  

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he was bullish on Valeant. He was bullish 
in the 200s, bullish at 180, bullish at 150,  

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bullish at 100, bullish at 80, 60, 40, and 
20. I think he finally sold at $10 or $15.

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Why? I mean, it’s just stubbornness. That’s all it 
is to it. It’s just stubbornness, in my opinion.