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2. Why do investors tend to sell losing positions together, on the same day, and separate...

2. Why do investors tend to sell losing positions together, on the same day, and separate the sale of winning positions over several days?

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2. Why do investors tend to sell losing positions together, on the same day, and separate the sale of winning positions over several days?

Investors tend to sell losing positions together because they do not want the position to continue losing. Once the price starts to fall, it can fall rapidly and if the investors wait to sell on another day, then the price would have fallen significantly resulting in huge losses.

On the other hand, investors sell winning positions over several days because when the price starts to increase we do not know to what value it may incrase. So, by selling over several days, investors make sure they have at lease some shares to participate in the longer uptrend and make more profits.

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