Selling at a loss to stop it growing
Cutting a loss means selling below what you paid and making the loss real. Holding on and waiting for a recovery is a choice too, but if the decline continues the loss keeps widening. Some investors set a rule in advance — sell if it falls a set percentage — and automate it with a stop order. Where to draw that line is a personal judgment with no single right answer.
Sell a $1,000 stock at $900 and the loss is fixed at $100 a share. Hold to $700 and it is $300.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.