Cutting Losses, continued
Holding Losers In Your Portfolio?
You may be looking at your portfolio and seeing there's some stocks already 8% below your purchase price — or worse. Should you sell them? Probably, unless a stock is showing strong signs of recovery, such as a rising stock price on solid trading volume and improving earnings. Even then, there is no guarantee it will rebound, and the chances are it could go even lower. The greater the loss, the greater the chance of it developing into a really serious loss.
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Related Resources:
Review IBD's 20 Rules For Stock Market Success.
Go to the Investor's Corner Archives to read IBD's "editor picks" of classic Investor's Corner columns.
Search our archive of Ask Bill O'Neil Q & A's organized by topic.
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