Understanding the Stock Loss

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Q: When does a Stock Loss become a Loss?

A: Here is a suggestion that may help you decide whether to sell: pretend that you don’t own the stock and you have $2,800 in the bank. Then ask yourself, “Do I really want to buy this stock now?” If your answer is no, then why are you holding onto it?

Q: When you Must Cut Your Losses in Stock?

A: Golden Rule: Always Limit Your Losses to 7% or 8% of Your Cost, without Exception