Cut loss is a way to preserve the money and limit the losses. Big corporations and investors do this in order to preserve their investments. There are a lot of risks involved in any sort of investments. And nobody likes to see losing their money in the market.

It is very important to determine the stop loss point before we long stock.

For William O'Neil ... Carefully average up, not down, and cut every single loss when it is 7% or 8% below your purchase price with absolutely no exception.

Another quote from Guru

"It's not how right or how wrong you are that matters, but how much money you make when right and how much you do not lose when wrong." -George Soros

Let's keep learning in investing world

Cut loss is a way of reducing your losses in trading, so that you are able to reduce your losses, while retaining the profits you've already made so far.. Its a risk management strategy that is very essential for both new and experienced traders. Since trading is very risky, cut loss helps individual traders and big corporations alike

When you'll start to trade very actively and not with some play account you will see that you are loosing money. It's a part of the process of tradin on Forex. With experience you will ... cut your losses cause you will see some trends which will allow you to do that on your test trades.

Cut loss is very important when trading, just like forex traders apply stop loss. It is a risk management strategy to ensure that even if the market goes against your trade, you do not end up losing all the deposit in your account. In brief, it cuts your losses