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Ken Griffin urges traders to sell and cut losing positions
The message comes as the S&P 500 is up nearly 13% year to date in early August 2026 and AI-related concentration risk has been highlighted by a hedge fund that lost 67% in July.
Yahoo Finance highlights Ken Griffin’s view on trading discipline, referencing comments from the Citadel boss that taking losses and selling is a necessary part of active investing.
According to the article, Griffin frames selling as psychologically demanding but essential, arguing that being unable or unwilling to exit positions can become the biggest obstacle to long term trading success, especially versus a buy and hold mindset.
The piece links that principle to current market conditions, noting the S&P 500 is up nearly 13% year to date as of early August 2026 and that elevated valuation measures and extreme concentration risk in AI related stocks leave little room for error.
It points to the near collapse of the AI focused hedge fund Situational Awareness, which lost 67% in July after concentrated leveraged positions and forced selling during an AI stock selloff, as an example of what can happen when selling discipline fails under margin pressure, citing the fund’s experience as the stakes for position management.
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