Focus on Finance: Know when to cut your losses

Question: How do you know when it’s time to cut your losses on investments?

Answer: When our portfolio rises in a bull market, we’re often energized to monitor our stocks and look for new opportunities. But when the market turns down, we may get slightly depressed and often stop paying attention. Perhaps, we think this is a normal pull back and our stocks will bounce back. Unfortunately, that may not be so. It may be time to cut some losses.

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