accumulating, page-34

Pete:
The disposition effect is the behavioural bias afflicting investors which leads them to sell winners (to lock in profits) and hold on to losers. It's been shown that investors who exhibit the disposition effect lose money on average since the stocks they sell tend to outperform stocks they keep. Don't make your trading decisions based on if you're on a capital gain/loss position, especially since it's another 12 months before the next end of tax year.

Get out of crappy stocks and keep the good ones. Disregard what you bought in for. Easier said than done...obviously.