Lessons from a Capital Management Mistake: $BABA

When Alibaba ($BABA) was booming in the Hong Kong stock market, I made a huge mistake in capital management. I thought the stock would go much further, so I over-allocated my position size significantly, even though the market was starting to show signs of slowing down. When the price started to reverse sharply, I was heavily stuck, causing me stress for several days. Instead of cutting losses and admitting the mistake, I hoped the price would recover, which meant I had to hold it longer than expected, missing out on many other opportunities. The lesson learned is that no matter how good a stock is, managing position size is the most important thing, so we always have ammunition and the right mindset for new opportunities.