It took me a while to realize this but better late than never I guess.
Basically if your stock is down 15% since you bought it, does not selling it mean that you haven't lost money?
I used to think YES to this, but now realize I was wrong, very wrong. I realized that I should instead ask the question: compared to other stock opportunities, does this position offer more upside?
The fact that it's dropped in value does NOT mean that it will come back more or faster than any other stock - this was the psycological mistake I was making.
;tldr : Of course if I still believe in the company, then there isn't reason to sell, but the only reason I should decide to or decide not to sell a stock is based on the potential upside from that position if I purchased it at the current price.
Submitted May 25, 2017 at 12:27AM by linlaoda http://ift.tt/2rjlRbM
