drone

Losing Trades: When to Double Down

Commenting on this article I'll refer to GE and BA, two stocks I held last summer. At the time these companies seemed like good defensive holds for a number of reasons. As the autumn unfolded and these stocks started going down I could have easily convinced myself that their prices were too good to be true. I could have doubled down bought more, but I didn't. I finally sold my positions in these stocks, the dividends didn't make up for the capitol loses.
When a security is going down get rid of it. Set your loss limit and simply get out. Dennis Gartman reminds us time and again - never ever add to a losing position - never, never, never.