Do you have a losing stock in your portfolio? If yes, why are you still keeping it? - Seedly
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Anonymous

Asked 2w ago

Do you have a losing stock in your portfolio? If yes, why are you still keeping it?

I think knowing when to let go and when to withstand paper losses is very hard to judge.

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Casey

Casey

Level 5. Genius

Answered 2w ago

For sure. Knowing when to buy is based on facts and valuation, that's easy compared to when to sell/continue holding because now it becomes future expectations vs opportunity cost vs emotions. This is not to say selling/holding are not based on facts and valuation, but due to loss aversion, we value losses twice as much as gains, hence heavier weightage on the latter factors. Not so easy anymore.

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Question Poster

2w ago

This is so helpful 👍
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Yes I do. Bought ESR REIT like a week before Covid. Still in the red. SIA was in the red for a couple of months till recently due to the vaccine news.

I am keeping these stocks around as I believe there is a chance for growth to return back to its original pricing. If you believe in the stocks you buy, it's only a paper loss to you. I will only sell a losing stock if I have no confidence in the stock where their business models do not align with me. I can use that money to invest in something else to earn back my losses.

1

Question Poster

2w ago

Good to remind oneself to not be swayed by paper losses sometimes as it is easy to get shaken
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Max Soo

Max Soo

Level 5. Genius

Answered 2w ago

I currently don't have one as I have previously sold about 2 of them because I do not have conviction in them and I found opportunities for me to re-deploy that money into a stock I was looking at.

Only hold a stock if you have conviction in it instead of 'hoping' the share price will increase.

2

Question Poster

2w ago

Or to remember to look at long-term
Max Soo
Max Soo

2w ago

Yes! Look long-term but only for great companies!
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Yes. Because fundamental is still good. Just that i enter at wrong time.

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YJ
YJ

2w ago

I will juz hold it till retire. Still have a job, still have income. When is down juz buy more to accumulate.
Question Poster

2w ago

Ah I see.
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Depending on how hard you trust the stock. If it's a firm yes, then average down the price.

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Because bought high since I DCA.

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Yes but just hold. Only paper loss

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