What is "Doi Trading"?

I think this question is something every investor must ask themselves at least once.
I remember when I first entered this field, I was like others who didn't know what this term meant.
But once I experienced it, I understood immediately.

So, what is "Doi Trading"?
It is a situation where you buy assets, such as stocks, cryptocurrencies, or other securities,
thinking that the price will go up, but it turns out the price drops heavily instead.
And instead of selling it off, you still believe that someday it will rise again,
so you choose to hold on. That is what "Doi Trading" is.

Why does this happen?
I've seen many cases.
The first case is when people buy stocks based on trends or the lively market atmosphere,
without studying any fundamentals.
For example, a stock called ABC, which has been priced at 5 baht for half a year,
with low trading volume, suddenly jumps to 6 or 10 baht.
People, sensing the hot atmosphere, buy without thinking, hoping the price will continue to rise.
But once many shareholders sell out, the price drops rapidly,
down to 3 baht.
Those who bought at 10 baht are now "Doi Trading."

The second case is buying based on rumors of unknown origin.
They hear that a major investor will participate, and the stock price soars.
But in reality, that news is just a strategy by the stock owner to create a viral effect,
causing many people to buy in large quantities.
Once they sell out, the news disappears,
trading volume decreases, and the price falls sharply.
Those who believed the news and bought are now "Doi Trading."

The third case is buying good stocks at high prices.
I studied MOE stock thoroughly, saw that it was growing well,
had solid fundamentals, and a reasonable P/E ratio, so I decided to buy a lot.
But I bought at a high price.
When the management announced slow growth and poor future prospects,
the price dropped.
And I was "Doi Trading" again.

What are the ways to prevent "Doi Trading"?
I think the most important method is to set a clear Stop Loss from the start when buying.
Decide how much loss you're willing to accept.
For example, if you buy UAA stock at 20 baht, and you're willing to lose 5%,
that’s 1 baht.
If the price drops to 19 baht, you must sell immediately—don't wait for it to fall further.

The second method is setting profit-taking points.
For traders, entering quickly and exiting with profit is key.
No need to wait for the price to rise too much.
For example, if you buy DEF stock at 5 baht, 5,000 shares,
and plan to sell at 5.2 baht,
once it hits that, sell immediately.
This way, you make a profit of 1,000 baht.
This method is called Scalping.

The third method, which I think is the most important,
is to study the fundamentals of the stock before buying.
Don’t just follow trends or emotions.
Check if the company has good operational results,
profitability, and whether the stock price is reasonable.
Buying based on emotion can turn impatience now into regret later.

The fourth method I want to mention is "averaging down,"
which is a very good technique for those who are "Doi Trading."
Suppose I buy 1,000 shares of a stock at 1 baht,
spending 1,000 baht, but then the price drops to 0.5 baht.
Now I have 500 baht left.
But I’ve already studied that this stock has good fundamentals,
so I buy an additional 2,000 shares with 1,000 baht.
Now I hold 3,000 shares, with an invested total of 2,000 baht.
My average cost drops to 0.67 baht per share.
When the price rises above 0.67 baht,
I start making a profit—I've "Doi Trading" successfully.

In summary, what is "Doi Trading"?
It is making wrong decisions—buying when you shouldn’t or buying at high prices.
But the good thing is, we can prevent it if we understand it well.
Study before buying, set clear Stop Loss, and define your exit points.
This will greatly reduce the chance of "Doi Trading."
And if you do get caught in it,
there are techniques like averaging down to recover.
I believe that careful investing and understanding the market
will help you avoid these sad situations.