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Saturday, 01/29/2011 12:41:24 PM

Saturday, January 29, 2011 12:41:24 PM

Post# of 233825
With regard to KATX:

When your stock's making a loss (selling):
How far might this stock fall? Can I afford to lose that much, or wait for it to come up again?
When stocks are falling, it is very bad news in the short-term. It is likely that some investors will panic, and stock may continue to fall, causing a chain reaction. But it's important to keep in mind that this is also an opportunity for other people to buy in, since stocks are for sale. Because of this, it is possible to cut your losses now, and try to sell before you lose too much money. But this is unlikely, since people, especially if they've made a profit until now, will be selling too, and new investors are likely to only want to invest once the stock has fallen as far as it's likely to, to maximize their profit %. Of course, if you are at this point, you may as well wait for it to go up again yourself...
In the long term, it may not matter much at all. Stocks will eventually rise again! It all depends on how long you want to wait for it to happen. Another option is to wait until it starts to go up again, so you know that people are buying in, and sell then, even though you will be making a loss. If you wait for it to go back into the greens again, you may end up in the same situation again, especially if you bought the stock at a bad time, or a price that it may not reach again anytime soon.

Courtesy of:

http://tcbasic.com/tutorials/stockmarket
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