Investors need to be cautious: What causes 'Doi' (being stuck in a losing position), and how can it be avoided?

In the investment industry, the term “ติดดอย” (getting stuck) is a specific term that every investor wants to avoid. However, this phenomenon continues to occur repeatedly because it stems from decision-making behaviors without a clear pattern. This article will help you understand in depth: What is ติดดอย, what causes it, and most importantly, effective solutions that really work so you can move forward confidently on your investment journey.

What is ติดดอย: Basic Meaning

ติดดอย is a colloquial term used to describe a situation where investors buy various assets—whether stocks, crypto, funds, or other assets—with the expectation that prices will rise. But instead of moving as anticipated, prices significantly decline.

The problem is, when facing losses, many investors do not use the “cut loss” strategy(Cut Loss) by selling off, but instead choose to hold because they believe prices will recover. The result is that the average cost of investment keeps rising, and the “ติดดอย” deepens further.

Why does ติดดอย happen: Analyzing from three perspectives

First cause: Decision-making influenced by emotions and trends

When the stock market is chaotic and trading volume is high, many investors fall prey to “FOMO”(Fear of Missing Out). An example of this situation is a low-priced stock XYZ, which previously traded only 1,000 units per day at 5 baht. Over a few weeks, the price jumps to 10 baht.

Such atmosphere creates psychological pressure for new investors to buy, hoping to quickly profit. Note that such decisions lack deep market analysis. When the stock price drops back to 3 baht, investors face heavy losses.

Second cause: Trust in unclear news

Investing based on rumors like “Major investors will get involved” or “The company will launch a new product” is a high-risk mindset. In many cases, these news are created by large shareholders wanting to sell. When such news spreads rapidly in digital society, many rush to buy, pushing prices higher.

Once these news sources sell all their assets, interest wanes, and prices fall because demand decreases. Investors who entered at the end must then be stuck.

Third cause: Misjudging fundamentals or timing

Some investors conduct thorough research, choosing stocks with good growth rates and reasonable P/E ratios. But the problem is buying at high prices. When the company announces a slowdown or earnings do not meet expectations, the stock price drops.

The belief that “not selling = not losing” causes investors to avoid cutting losses, leading to being stuck until the price possibly recovers, which may never happen.

Strategies to prevent being stuck: Practical methods

Method 1: Set stop-loss points (Stop Loss) before investing

Stop Loss is not a failure but a way to protect your capital. The calculation is simple:

Stop Loss point = percentage willing to lose × purchase price

For example, if you buy stock BBB at 20 baht and set a 5% loss limit, then Stop Loss = 5% × 20 = 1 baht. So, if the price drops to 19 baht, sell immediately.

The percentage you are willing to lose depends on your risk tolerance. Some accept 10%, others only 2%. The key is responsible self-discipline in following the rules.

Method 2: Set profit targets and sell immediately

For day traders or scalpers, mindset should be “enter safely, exit with profit.”

Example: Buy stock CCC at 5 baht, 5,000 units totaling 25,000 baht. Set a sell target at 5.2 baht. As soon as the price hits 5.2, sell to realize profit = (5.2 × 5,000) - (5 × 5,000) = 1,000 baht. This technique is called Scalping.

Market volatility(Market Volatility) is high, but with a clear plan, selling at target helps preserve gains.

Method 3: Study fundamental data before decision-making

The timeless phrase “Invest in what you understand” is not just advice. If friends or surroundings recommend a new stock, before rushing to buy, ask yourself:

• Does this business generate good profits?
• Is the growth rate announced or just speculation?
• Is the stock price reasonable compared to earnings per share (P/E Ratio)?
• Why do I think the price will go higher?

Doing research takes time but prevents getting stuck much better.

Method 4: Use “averaging down” technique to reduce costs

If you select good stocks but buy at inopportune moments, this strategy can help:

Suppose you buy DDD stock at 1 baht, 1,000 units (money 1,000 baht). When the price drops to 0.5 baht, buy an additional 2,000 units (money 1,000 baht). Now you hold 3,000 units with a total investment of 2,000 baht. The average cost = 2,000 ÷ 3,000 ≈ 0.67 baht/unit.

When the stock price recovers to 0.67 baht, you can make a profit. But the risk of this method is if the stock fundamentally deteriorates, averaging down can increase losses. Use this only with stocks you are confident have good fundamentals.

Change your mindset: Key principles in investing

You shouldn’t fear being stuck because it’s a situation that can be effectively avoided. The difference is:

• Getting stuck results from lack of planning, insufficient research, and emotional control.
• Safe investing comes from having clear Stop Loss plans, fundamental study, and disciplined adherence to the plan.

As long as you stick to these protective strategies, even if you buy and prices fall, you can “go down” thoroughly instead of “getting stuck” and waiting for a recovery that may never come.