How much is the Doi going up? What investors are missing out on the least

All investors, whether beginners or experienced, have encountered or are currently experiencing an undesirable situation: “Getting stuck on the mountain” (ติดดอย). Market conditions change, hopes turn into losses, and the point that should be a winning position becomes a point where you must absorb losses from your initial capital. But can this be prevented? This article will reveal the deep story of What is getting stuck on the mountain and strategies to avoid it that are not just theoretical but practically achievable.

What does it mean to get stuck on the mountain?

Getting stuck on the mountain is a situation where investors buy assets ( whether stocks, crypto, funds, or other securities ) for various reasons, expecting the price to rise higher. But in reality, the signals are the opposite: prices continuously decline, and instead of deciding to sell to cut losses, investors choose to hold on, hoping that someday the price will recover and they will make a profit.

Most people’s view of this situation is “If I don’t sell, I haven’t lost.” So they endure and wait. When the price never recovers, all their capital after the decline turns into a serious loss.

Why does getting stuck on the mountain happen?

Historical price cycles: Buying during a hot market

Markets have cycles, and currently, we are in a rising trend. Sometimes, we buy without thorough analysis, just feeling that everyone is buying, so we should buy too.

Imagine seeing ABC stock priced steadily at 5 baht for over half a year, with low trading volume. Suddenly, the price jumps from 5 to 6, then 8, and finally touches 10 baht amid a lively market atmosphere. The excitement clashes with the heat, and many investors borrow to buy. “Is it too late to buy now?” they decide to purchase at 10 baht, perhaps 1,000 shares, investing 10,000 baht.

If afterward, the stock reverses and drops back to 3 baht, calculations show that selling now would yield 3,000 baht from an initial 10,000 baht investment, resulting in a severe loss of 7,000 baht. The key point is that many investors refuse to cut losses, thus falling into a widespread getting stuck on the mountain.

Unclear news and insufficient awareness

Often, investors hear news like “big investors are entering” or “there will be new developments,” without verifying the source. They rush to buy. In reality, these stories may be fabricated by major shareholders wanting to sell, causing the price to spike. Once they sell, the news disappears, trading volume shrinks, and the price drops sharply. Those who believe the news become heavily stuck.

Good stocks but overpriced

This situation reflects a classic mistake: investing in what we know. We think MOE stock has sustainable growth, solid infrastructure, and an acceptable P/E ratio. So, we decide to buy heavily. But the mistake is timing—buying at the peak.

Soon after, the management announces slower-than-expected growth or, worse, a cautious outlook. The price declines. If we sell in time, it might be fine, but the adage “If I don’t sell, I don’t lose” keeps us stuck with this stock, trapped in a bad position on the mountain.

How to deal with suffering from getting stuck on the mountain?

Set loss limits before entering

Experienced traders say that Stop Loss is the investor’s lifeline. Setting a clear Stop Loss immediately upon purchase shows respect for yourself and your money.

A simple calculation is to set a percentage of acceptable loss. For example, buy at 20 baht, set a 5% loss limit: Stop Loss = 5% × 20 = 1 baht. When the price drops by 1 baht to 19 baht, sell immediately without hesitation. No pretending to wait longer.

The appropriate percentage depends on your risk tolerance. Some set 3%, others 10%. The key is to have a guiding principle and discipline.

Set a sell point before it’s too late

Short-term traders or scalpers must have the mindset: “Enter quickly, exit quickly, make profit.” These stocks are highly volatile, so aiming for a 2-5% gain to move on is feasible.

Example: Buy DEF stock at 5 baht, 5,000 shares, totaling 25,000 baht. Set a target to sell immediately at 5.2 baht to lock in 1,000 baht profit. Repeating this strategy repeatedly accumulates results.

Knowledge is money; understanding is profit

Before buying anything, study thoroughly: growth rate, profit margins, P/E ratio, competitive ability, financial performance. After analysis, know which stocks are truly good, what price is fair, and what price is overvalued.

Failures often come from blindly following trends due to lack of fundamental knowledge. You don’t need to be an Einstein, but at least understand what you are investing in.

Price averaging technique: How you can end getting stuck on the mountain

If you are confident that the stock has solid fundamentals and the current price has fallen, the next question is: “Is there a chance?”

Suppose you initially bought at 1 baht, 1,000 shares, totaling 1,000 baht. The price drops to 0.5 baht, leaving you with 500 baht. You can buy an additional 2,000 shares with 1,000 baht.

Now: total shares = 3,000, total investment = 2,000 baht, average cost = 0.67 baht/share.

When the price recovers above 0.67 baht, profits start to come in. The key is to be confident in the fundamentals and maintain discipline and composure.

In conclusion

What is getting stuck on the mountain is a turning point for investors—an experience that teaches us that the market doesn’t necessarily want us to be rich, but it is willing to teach us to be smarter. If you hesitate about whether you’ll get stuck, the best approach is to think, “I definitely won’t get stuck.” Avoiding getting stuck is easier than climbing up. As long as we follow disciplined investing, have a plan before entering, and know when to cut losses, the world of sustainable profits will come to us.