So what can you do to stop taking big losses?
Many experienced investors know when to cut their losers.
They simply set a simple stop loss and stick to it. A stop loss is an important tool you use to limit your losses when buying shares.
It will prevent you from falling into the trap of hanging onto losers too long.
One of the most influential investors of all-time, Philip Fisher, in his book Common Stocks and Uncommon Profits said…
"More money has probably been lost by investors holding a stock they really didn’t want…than from any other single reason."
See you next week,
Managing Editor, The South African Investor