How Should I Decide Whether To Cut My Losses Or Hold Onto It Further?

No matter what, remember that you must have a pre-planned strategy when losing. You must set your rules & specific boundaries before you invest. The best thing I did which helped me a lot in the long run, is that I aim to limit my losses between 7-9%, so this is the time when I always cut my losses, as I know that it won’t hurt my budget much. On the other hand, I’ve had some stocks that firstly fell around 4-5%, but then raised high into good gains, so there are certainly some stocks to hold on to.

Another tip I often give to new traders is to always ask themselves if they would buy the stock at the moment. If the answer is a resounding "No," then it should be sold. My last words - don’t let your losses define you. Keep the loss in context and never take it personally. Remind yourself that a lot of other people out there took a hit just like you did, maybe even more of a hit than you did.

If you can be disciplined over the long term and that is the key to your strategy, you can have a better chance of creating more and more wealth down the road.