" to be or not to be..."

Discussion in 'Psychology' started by del_trade, Aug 4, 2006.

  1. del_trade


    How long is long enough time to hang on to a stock that is falling in value?
    Do you ride it and hope for it to turn around and rise, or do you cut losses when it's reached a point of no return?
    <<Post your rule of thumb or golden rule to go by when determining-when to cut a loss>>:cool:
  2. You pick up more at a cheaper price. Thus, when the prices go back up again, you PROFIT x 2 ...
  3. If you have to ask this question on a forum, get the heck out of your positions and never go to market again.

    BTW, how do you determine "a point of no return"?
  4. del_trade


    :D wow mr./mrs./or miss/ noNonse! Thank you for that reply that I guess this answers my question to how to exit a trade and with attitude.let me clarify-what I meant by the question is for a feedback on some mathematical prototype to follow when deciding when to cut a loss soon in a position. maybe 8% of the maarket value or from the basis....:cool: Idontknow. do you hang on to it and for how long?:eek:
  5. It might depend on what type of stock that you are holding.
    Cyclical versus broader based economy stocks. Where are we in the business cycle ? Does the company have earnings ?? Do an overall health check on the company as much as you can dig up.
    The economy is slowing- what is the reason for the decline in your stock ?? Are insiders bailing ?
    Homework will help you make a good decision for your risk tolerance. I hope you well .:)