Lost Money on an Investment? Here's What to Do
Your goal as an investor is to assemble a portfolio that allows you to steadily build wealth over time. But on the road to building wealth, you might hit some snags. Specifically, you may end up having to sell a stock when it's down, thereby taking a hit on that investment.
To be clear, a lot of people's portfolios are down right now year to date due to general stock market turbulence. And that's not a very good reason to sell a stock.
But let's say there's a stock in your IRA or brokerage account that's been consistently losing value since you bought it. Let's also say that you've been following the company's financials and have reason to believe those shares will be worth even less money down the line. That's a good reason to take a loss rather than sit tight and ride things out.
Source Fool.com
