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Investing 101: When Should You Sell a Losing Stock?

Posted August 4, 2008

“A few good days in the market, and you’ll be back to even… Not so fast. When it comes to ‘recouping’ losses, you have to look at the equation in a different way.” — Christian Hill

Blogger’s note: We’ve all had it happen. That stock you loved, the one with the great management, a fantastic product and beautiful sales figures suddenly tanks. And you’re in the hole 30% in one day. So what do you do? Do you cut and run? Or do you stick it out and hope the stock pulls itself back up?Christian Hill of Early to Rise gave his readers some food for thought when they’re considering holding or cutting their losses on an investment.

by Christian Hill

Baltimore — (TFN): Sitting at a bar, head in your hands, you’re wondering how it happened. How could your favorite stock have fallen so far, so fast? It looked so promising months ago. But here you are, sick to your stomach over it.

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You’re tempted to hang on to the stock and wait for it to rebound. You bought it at $30/share, and it is now $20/share. You want your money back. And it shouldn’t take too long to make back that $10/share, right? A few good days in the market, and you’ll be back to even…

Not so fast. When it comes to "recouping" losses, you have to look at the equation in a different way. Read on to learn more Investing 101 tips.

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