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Fool has been a good source of recommendations and profit for me, so no complaints.

However, there have been a few Fool recommended equities latey that have gone down substantially since recommendation.

I get the concept of holding until the thesis changes. But, all of my greatest errors as an investor have involved holding on too long after a stock started to dive.

At present I have 4 Fool equities, including SWAV, down around 20% or so. I would normally have sold them when they went down 10%, but am following the Fool playbook and hanging in grimly, hoping for a turnaround.

The question is, at what point does one cut losses with Fool equities ?

Fool theory is to never cut losses based on price action, as far as I can tell, but only if something fundamentally changes with the company. The problem is, this can lead to confirmation bias, and holding on far too long.

So it's a dilemma.

Perhaps more experienced Fools out there have a hybrid approach that they have found to work. For example, cut losers but keep them on the radar to pick up again when the chart starts to look good.

Has anyone developed a modified Fool approach they'd like to share here, aimed at minimizing losses ? Has it worked or did you end up regretting it ?

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