Sometimes its best to ignore your original purchase price when determining whether to buy or sell.
All that really matters is the prospects going forward, take a stock such as VET, effectively a number of announcements came out which would make one consider the mortality of its business model, the stock proceeded to fall from $3 to $1.30. If one had stopped and evaluated the prospects of the business going forward it was a rather easy decision (maybe more so in hindsight) to move on. However if one waiting for the share price to move back up to $3 you would still be waiting is it currently trades at around $0.14.
During this time if you had sold at $1.30 and reinvested into another stock you could well have made your original capital back and then some.
One needs to be able to determine if the news has permanently or temporarily damaged the prospects of the business going forward, if temporary it may be worth adding to your position. If permanent it may be best to move on.
Not advice but just something I have learnt along the way. Please dyor.
IFL Price at posting:
$8.77 Sentiment: None Disclosure: Not Held
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