"This is exactly right. Hold on to a rapidly depreciating stock...

"This is exactly right. Hold on to a rapidly depreciating stock and, many more times often than not, you are going to lose big time."

Totally agree with you there Mak! There are times that I have entered a stock which I know is good and got in at the wrong time, with no exit plan and ended up holding on through the pullback only to get frustrated and exit just before it went back up!
The absolute KEY to investing that so many overlook is if you enter a trade you need a plan to exit and you need to document it so that you are clear in a few months time or however long the time frame may be what you intend to do. Anyone can get into a stock, knowing when to get out is much harder! This is what separates the pro from the amateurs. You're exit strategy also needs to allow profits to run. NOT have a fixed profit like say 20% unless your trading tiny time frames on say Forex. In my above example getting in just prior to a pullback, if I have a fixed exit for when it goes wrong I get out without losing too much and can get back in when it starts to move north again. It's better to take a small loss and be back on the sidelines than to hold a loss and be bitter and twisted every day. Investing is supposed to be about improving your quality of life not putting you into a world of pain.

On another note, in penny stocks such as RMX it can be hard to set and appropriate stop because they are so volatile. In which case the next point of call is to ONLY INVEST WHAT YOU CAN AFFORD TO LOSE!! This way if you do have to ride it down to - 50% or the like you aren't losing sleep. I'm currently down 86% on xo's, well 100% really! (luckily I made some on the way up) and my OA's are down just under 50% but I don't lose sleep over it because I used an appropriate position size. I have twice as much OA as I do O's, luckily I starting selling o's to buy oa's when the price was closer to parity to buy me a little time because the story is still good.

GLTA use your mistakes as a learning curve!