I have read some material from various sources in recent times and what has stood out to me is that most of the people that have sold have regrets because the price has come back up and done very well had they held on to the stock.
At the time it was out of favour and trending down and going nowhere. So when to bail?
Somethings i have picked on was that some have sold to buy lower but then the price went back up etc
I am sure you have all read or heard what i am saying so what are the things to look for that might tell you the price will continue to plummet or it may come back up.
I was put on to a stock about 6 months ago and has gone down and at the moment going nowhere i believe that it is still a good company. I own 100000 shares in it and i am not selling, whats the point but it has certainly tied my money up.
I understand that different strategies for short med long etc but knowing what i know now i probably would've put a stop on it. When i wanted to i got talked out of it because the person had been stopped out and the price ran on him. Don't use a stop he said you'll regret it...famous last words..lol.
I make a good return with racehorses ( treat thiem like stocks really)..lol so i am not afraid of a punt so for long term i am not convinced that a stop loss needs to be used.