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No. of Recommendations: 2
Great answer by the Captain, but I will chime in as well.

"I wonder how to save myself from this situation?"

I finished the first iteration of my direct holdings portfolio in Feb 2020. Soon enough I was -30% from my cost basis, not from an ATH!

I just held my highest conviction stocks and traded my lower conviction ones for great stocks on deep discounts. Ended the year +144% in that account after adding money over the rest of the year as well.

Now I went south of 25% off ATH and with no real Plan Bs to sell, only sold a couple weaker Plan As and dumped in as much new money as I could.

If the companies are fine themselves and these are LTBH, it is what it is. Btw, ARKF is doing pretty well since March 30 ended. It is a core holding in my 401k. The high growth stocks can fall quickly and lot but they can also rise like no others.

For the more speculative or pre-revenue positions, I could go either way.

On EDIT, I have no stops. On CLOV I have no stops. I consider both very risky but the money that's there is there and that's it: all or nothing unless the ship is obviously sinking.

OTOH, right now, I have a stop on NARI in the area of the March lows. Although the company is performing great I find it hard to believe I will stay with a company like that for more than 1 year or so, hence the stop in case something hits and everything tanks.

I recently took a brand new position in TWLO. That I will be watching carefully since it, too, is more of a 1 year momentum position in intent than anything else. I stupidly did not buy TWLO at 85 when I had my finger on the button in Mar 2020 so I am not buying it at 380 as a "forever" holding.

Those two are my only intended stops. I have some other shorter-term money, but they are in IPOF (waiting for a fancy acquisition) so that has a floor anyway and I bought recently well under 11.

Anyway, yes, the most important thing is not to panic. Buying high growth at ATH, selling during a growth stock crash, and then trying to get out by buying something conservative with comparatively little upside seems to me a sure way to lock into losses for a long time. I see no issues with my companies; just some valuation concerns that are no longer that big--and ERs are around the corner.

Hence, the "it is what it is;" don't plan on under 5 years, etc. principles.
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