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When should you cut your losses on a stock


No matter how many times they're flipped, they can rise to fight again. Highly successful stock pickers go through similar training: They must learn how to cut their losses short. This means selling a stock when it's down 7% or 8% from your purchase price.

At what percent loss should I sell stock?

To make money in stocks, you must protect the money you have. Live to invest another day by following this simple rule: Always sell a stock it if falls 7%-8% below what you paid for it. No questions asked.

Should I sell my stocks at a loss if its down?

When a stock trades at a technical inflection point: When a stock trades near—and then breaks below—a multiyear low, it often portends additional losses ahead. In this case, it may make sense to sell the stock as soon as the technical level is breached on the downside.

What percentage should I cut loss?

Stock Trader explained that stop-loss orders should never be set above 5 percent [3]. This is to avoid selling unnecessarily during small fluctuations in the market. Realistically, a stock could fall by 5 percent midday, but rebound. You wouldn't want to sell prematurely and lose out on potential gains.

How much loss is acceptable in stocks?

A general rule for overall monthly losses is a maximum of 6% of your portfolio. As soon as your account equity dips to 6% below where it registered on the last day of the previous month, stop trading!