How to deal with losses in the stock market?
There are different kinds of losses and my reaction to each of them would be different. Sometimes losses are due to random fluctuations in the market (perhaps there was a market wide correction, or a rumour in the news that may or may not be true). In this case, nothing has changed regarding my view towards the stock. Hence holding it would be the decision to take. On the other hand, if the losses were due to a significant change in the company, e.g. management changes, it would be wise to reconsider if the reason I invested in the stock still holds. If the reason I invested has changed/disappeared, and I do not see any further catalysts then there is no reason to be holding that stock. The money would be well placed in other stocks/financial instruments.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
