Stock market behavioral finance
What to do if your stock is currently a loss of money?.
The answer is not simple.You have the following stock market options :
- Sell the stock
- Keep the stock
- Sell if you think fundamentals are no more any good
- Keep the stock if you think general conditions of the stock and stock market will get better
Another great reason to sell a stock if it is not profitable is when it reaches your defined stop loss.Any great stock if it loses lets say 30% of the price when was bought will take a lot of time to recover losses.But if it is a long term buy and hold stock pick then even at this loss it could be worth holding it, mainly if it has good fundamental features.
