Skip to main content
No. of Recommendations: 1
First of all, there is no excuse for holding a stock that goes down 40%, or even close. You should monitor your holdings carefully, and sell when something begins to decline. The 21 day EMA is a good guide. If it is above its 21 day EMA is is probably good, unless you think it is way too extended. Of course, if it goes down 40% in one day, you are pretty much out of luck.

So far as a % of portfolio is concerned, it really depends on how much money you have. A good rule that some have is about $10,000 per stock at least, and (if possible) at least 10 stocks.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.