Blog: Cut your losses
Investors know (or should know) that in order to make money in the markets you have to let your profits run and cut your losses short. It all makes sense. Doing it, however, is hard for most people. When I take on new clients we usually start out with a portfolio review and discuss the “corpses in the closet” the stocks that fell a significant amount and that the investor is still holding hoping for a turnaround. After all, he or she is a serious long term investor and in the long term the stock will be all right. Maybe, maybe not.
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