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Mstinterestinman (43.56)

What is a acceptable loss limit?

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May 19, 2010 – Comments (6) | RELATED TICKERS: GMCR , UVE , KO

Figured I would get some inputs from some of the more experienced investors. At what point do you cut your losses on a losing a position? Or do you hold on if the fundamentals have not changed.

Voice your insights below. 

6 Comments – Post Your Own

#1) On May 19, 2010 at 1:09 PM, throwerw (30.63) wrote:

when your stocks go down, sell the ones that have not gone down as much to buy more of what has gotten cheaper.  be prepared for some of your stocks to drop 50% or more.  if nothing has changed fundamentally, buy more.

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#2) On May 19, 2010 at 1:14 PM, Superdrol (93.13) wrote:

http://www.fool.com/investing/small-cap/2010/04/30/why-im-down-more-than-80-and-how-to-avoid-my-mista.aspx?source=itxsitmot0000001&lidx=4

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#3) On May 19, 2010 at 1:39 PM, chk999 (99.99) wrote:

Remember, Mr. Market's moods go up and down. Take advantage of them, don't be influenced by them. Buy when you think you are getting a bargain and sell when you don't think it isn't worth that much. If your basic thesis hasn't changed, then a big drop in price is a buying opportunity. But be careful and keep looking for contrary evidence.  

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#4) On May 19, 2010 at 1:44 PM, Griffin416 (99.98) wrote:

I hope this helps for your future, perhaps not if you are already in the red and suffering). From your post it seems as if you are trading. You should planned it out before you buy, where you would sell it and why. This way you can stay objective.

If it is an investment and the fundies have not changed, read up some more to double/ triple check and buy more...it is on sale

In my personal trading style, I use a trend line, if the stock violated it, I sell. Only other reason I sell is if I fell the market will tank and I simply need to raise cash.

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#5) On July 25, 2010 at 7:22 PM, Mstinterestinman (43.56) wrote:

Most of the time I only sell to raise to raise cash most of my current portfolio I plan on holding for life unless something in the business changes for the worst.

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#6) On July 25, 2010 at 7:59 PM, goalie37 (96.42) wrote:

I only sell when I find that the reason I made the buy is no longer true.  This can happen whether the stock is up or down.  I don't believe in waiting for a losing deal to come back up.  Just take the tax loss and look for a better investment.  In addition, if your stock went down, there's a chance that the whole market went down too.  This means you can get into your next stock at a cheaper price.  My thesis on buying and selling is ask myself if the trade is an investment or a speculation.  As soon as I decide to sell, any possible movement in the stock beyond that point becomes a speculation.

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