• when should you cut your losses

    Own Up That It’s Not Going To Go Up Soon

    WHEN SHOULD YOU CUT YOUR LOSSES Sometimes we all pick a share and we are convinced that we are right and everyone else is wrong when the share price refuses to confirm the value we have placed on the share through our meticulous or sometimes not so meticulous calculations. We buy more of the share at lower levels as we cannot believe how cheap the share is relative to our valuations. So rather then buy a share hitting new highs we concentrate on buying “bargains” at new lows. “The market is wrong” we keep saying as the share moves to new lows and sometimes this might be correct if its…