Ken Hawkins falls into the category of great people who's advice I respect! I think the attached comments from a recent Investopedia article by Ken are a great reminder to all investors....you can't just wish away your mistakes! Ken gives a great breakdown of what we do wrong, why we do it, and how to stop yourself from doing it!
Enjoy!
soismike
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The Art Of Cutting Your Losses by Ken Hawkins (Contact Author Biography)
One of the most enduring sayings on Wall Street is "cut your losses short and let your winners run". Sage advice, but many investors still appear to do the opposite, selling stocks after a small gain only to watch them head higher, or holding a stock with a small loss, only to see it worsen.
No one will deliberately buy a stock they believe will go down in price and be worth less than what you paid for it. However, buying stocks that drop in value is inherent to the nature of investing. The objective, therefore, is not to avoid losses, but to minimize the losses. Realizing a capital loss before it gets out of hand separates successful investors from the rest. In this article we'll help you stand out from the crowd and show you how to identify when you should make your move.
(click the link below for more....)
http://www.investopedia.com/articles/stocks/08/capital-losses.asp
by Ken Hawkins (Contact Author Biography)Ken Hawkins is a financial writer and vice president of Second Opinion Investor Services http://www.secondopinions.ca/, an investment consulting firm that provides unbiased and independent investment advice. His experience spans the investment world of the private client investor as well as the world of the institutional investor representing pension funds, asset management companies, mutual funds and investment counselors.
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