An Investing Analogy:
WHEN TO SELL A “LOSING STOCK”: (ticker symbol, CHAS)
The first rule of investing is to manage risk and cut your losses before the bad investment further erodes your returns. The tendency is to hold on to the hope that it might turnaround, but the more a stock falls- the more ground it has to recoup. The key is to stop the bleeding and cut your losses, and get your portfolio back on track more quickly.
Ask yourself: Would I buy this stock right here, right now? If the answer is no: sell it. The time you spend waffling is an opportunity cost to deploy the capital elsewhere, where you have the potential to make your money back.