There is one question that keeps on coming " I bought stock XYZ, and it's down 30%. I don't think it's a winning company. Do you think it's a good idea to wait until it gets back to my purchase price and then sell?"

Technically speaking, **its a judicious call you have to make, as you have the maximum risk exposure, and no one else!** However, If the only reason you're holding onto a stock is to break even, we can unequivocally say that **this is a bad idea**. (It's called "anchoring bias") Remember, **the market doesn't care what price you paid for a stock**. It only cares about the company's potential moving forward. Consider all of the other things you can do with that money: * Sell it to gain potential tax advantages for your loss. * Use it to buy a stock you have much more faith in. * Let it sit in cash to help you sleep a little easier at night. Those are just three examples -- there are many more. The root of this problem is simple: **our ego gets hurt when we take a loss.** But this is the difference between beginner and experienced investors. Beginners can let a loss eat at them. Experienced investors know the **long-term results of their entire portfolio** \-- and how those results help them lead the life they want to live -- are all that matter. So understanding risk and proper risk management is a corner stone of investing, and in terms of Grahm, **margin of safety**, the more you have the less chances of you getting hurt, when market goes down, remember **pain/loss is inevitable, suffering is a choice!** Stay focused on that, and you've tipped the scales in your long-term favor. Happy Investing