Invest Without Missing Out: A Guide to Avoid 'Getting Stuck' for Investors of All Levels

If you are new to investing, the term “ติดดอย” might sound strange, but for experienced investors, it is an event that can hinder their investment development. This post will help you understand what is “ติดดอย” and more importantly, how to prevent yourself from experiencing this situation.

Understanding ‘ติดดอย’ Clearly

ติดดอย is a condition where investors buy various assets(stocks, funds, crypto, etc.) with the expectation that prices will rise. However, because the market moves in the opposite direction, prices fall instead. The key point is that instead of accepting losses, investors choose to hold onto the assets, hoping that one day the prices will recover.

Although this way of thinking seems reasonable, it often results in costly decisions because while you wait for prices to soar, the market may have already moved in another direction.

Four Events Leading to ‘ติดดอย’

Case 1: Buying when the market is already sluggish

This situation occurs with investors who lack fundamental analysis, relying more on emotions and market sentiment. For example, ABC stock remains relatively stable at 5 baht per share with low trading volume for a year, but one night, the price suddenly jumps to 10 baht.

With rumors circulating in the market, many investors rush to buy at 10 baht, thinking it will continue to surge. However, soon after, the price retraces to just 3 baht. Selling now would result in a 70% loss, leading many to wait despite no signs of a rebound.

Case 2: Falling for baseless rumors

Investing based on unclear information, such as hearing “big investors will come in” or “this company will expand,” is very common.

In reality, some existing shareholders want to sell at high prices, so they create viral news to generate demand. Once they sell out, the news disappears, trading volume drops, and prices plummet. Buyers lured by rumors end up “stuck” in the dory situation without realizing it.

Case 3: Buying good stocks at the wrong price

Often, investors study a stock and conclude “this is a good stock,” but then buy when the price has already surged. For example, MOE stock has strong fundamentals with a reasonable P/E ratio, but you buy when the P/E ratio is already high.

When the company announces slower-than-expected profit growth or worse, no growth at all, the price falls, and you get stuck in the dory.

Case 4: Betting without a plan

Investors who lack discipline in setting targets and exit conditions tend to fall into the dory trap more easily because they have no clear “stop” point.

Practical Prevention Methods

Step 1: Set a firm Stop Loss

A Stop Loss is a point to cut losses, like a promise to yourself: “If losses reach this level, I will exit.”

A simple way to calculate is to set a percentage of acceptable loss(for example, 5%), then multiply by the entry price. For instance, buying UAA at 20 baht with a 5% Stop Loss = 1 baht, so the stop point = 20 - 1 = 19 baht. If the price hits 19 baht, sell immediately.

Stop Loss points vary for each person depending on their risk tolerance.

Step 2: Always set a profit target

For scalpers or day traders, the rule is “Enter quickly, exit with profit.”

For example, buy DEF at 5 baht, 5,000 shares(total 25,000 baht), and set a sell target at 5.2 baht. Once the price reaches this target, sell immediately to lock in a profit of 1,000 baht. This method is called scalping, a precise calculation-based trading style.

Step 3: Study before investing

Whether you see a stock from friends or read various news, the first step is always “study.” Verify that:

• The company has real earnings
• It has sustainable profit potential
• The stock price aligns with its true value

Following trends blindly can lead to impatience now, which may cause regret later.

Step 4: Use ‘averaging down’ wisely to escape the dory

“Averaging down” is a technique for those who believe the stock has strong fundamentals but has temporarily fallen.

For example, buy stock at 1 baht, 1,000 shares( with 1,000 baht), then if the price drops to 0.5 baht, buy an additional 2,000 shares at 0.5 baht( with 1,000 baht).

Now, you hold 3,000 shares with a total investment of 2,000 baht, and your average cost is 2,000 ÷ 3,000 = 0.67 baht/share. When the price rises to 0.67 baht, you break even and escape the dory.

However, do not use this technique with stocks where the decline is caused by unclear reasons, as the fall may continue.

Things to Remember

ติดดอย is a situation that complicates investing, but it is not the end. The key is to prevent reaching that point. By setting clear Stop Loss, studying stocks before buying, and maintaining discipline in trading, the chances of getting stuck in the dory are greatly reduced.

Remember, investing is not a game of luck but an art that requires practice. Are you ready to start correctly?