Q: I am aware that you favor not selling when positions are down a significant amount when nothing has changed with the holding; good companies are good companies even when the stock price is down. You also believe, and I agree, that market timing is very difficult.
I am an older investor and I favor dumping a position if it declines by a set percentage { eg 10% } to restrict my losses. I then take the proceeds from the sale and move on to another good company.
My objective is to avoid situations where the stock price can fall more than 50% and who knows how long it will take just to recover.
I am interested in what your thoughts are as this applies to older investors. Thank you for any input.
I am an older investor and I favor dumping a position if it declines by a set percentage { eg 10% } to restrict my losses. I then take the proceeds from the sale and move on to another good company.
My objective is to avoid situations where the stock price can fall more than 50% and who knows how long it will take just to recover.
I am interested in what your thoughts are as this applies to older investors. Thank you for any input.