You're anchoring. What that means you have bought into a prior...

You're anchoring. What that means you have bought into a prior position, and made that an "anchor", a psychological price level which has no meaning, and that's why you're torn, on one hand you formed a long thesis and want to buy more, but your anchor wants you to close the position out of fear it will drop more and widen your losses, OR you formed a short thesis and want to close, but you want to buy more because you're hoping the new order will cover your losses. In either case, anchoring causes either fear or hope, both are negative emotions. Hey we're all human and I'm in the same boat as you, I watched my my "investment" in this stock promptly fell 50% in a few days, never have I experienced anything like this, I broke several of my own rules buying this stock (then again no rules are absolute), but despite the drop I review my thesis everyday and it stays in tact until new info makes me believe otherwise. So stick to your thesis whether its long/short and forget about your original entry price, you'll feel much better that way, at least that's what I try to do. Its difficult to do this though when you keep adding to a position so large to point its difficult for you to sleep at night.