AAII - West Suburban Sub-Group in Naperville, IL . . . Newsletter & Information Blog

Thursday, December 29, 2005

Take A Loss Quickly

Taking a loss is never pleasant and no one likes to do it. Yet, if one is to become an active investor, it will become necessary to take a loss from time to time.

If the decision has been made to sell and take the loss, it is risky to delay in hopes of getting a little extra. This usually results in an even greater loss as the price continues to drop even lower.

Once you have made a decision to sell and take a loss, you should complete the action as soon as possible. Why risk losing another 10 percent on the price? A market sell order will complete the sale with the greatest speed.

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