Management character is one of my primary criteria for deciding when to cut losses on a declining stock. If the management team consists of upright individuals, I am willing to give the company more time to navigate challenging market conditions. I typically buy stocks on the 'left side' of the chart; as a result, holding paper losses at low P/E levels is my standard investment approach.
@koolgal:🌟My biggest trading weakness is a classic: I am a world class "Bag Holder", treating losing stocks like stray puppies that just need more "time" and "hope" to get back to breakeven. Warren Buffett has a blunt warning for those of us caught in this psychological trap: "Selling your winners and holding your losses is like cutting flowers and watering the weeds". How do I plan to fix this trading weakness? 1. The "Hard Stop" Divorce: Setting a stop loss at entry. If the price hits the line, the relationship is over. There is no "we can work this out" talk. 2. The "Blank Slate Test": Ask the question - 'If I didn't own this weed today, would I buy it?". If not, it is time to cut it off. 3. The "Flower" Pivot : Moving my capital from the stagnant weeds into