Should you sell the lost stock when the market falls?
What do you do when you hold a loss of stock during a volatility? Do you want to sell the stock or continue to lose money? In the downturn of the market, seeing your capital shrinking is certainly not a pleasant experience. Because it is an uncontrollable situation. You need to do, first of all, do not let yourself panic. Past experience tells us that the bust of the years inevitably follow the prosperous years.
Investment means long term. More often, the successful investment is a result of an appropriate plan and sticks through the ups and downs of the market. There are many ways you can handle lost stock. One of them is to review the stock you hold.
Some questions you need to ask yourself:
- Does the company provide products or services that consumers consider important? Is the competitor's product much better?
- What is the reason for the stock price drop? Is it a company announcement or because the whole market is down?
- Is the stock downgraded by research analyst?