Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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 ?

Thankyou.
Print the post  

Announcements

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.