I am a long term investor and willing to ride the losses since the stock will rebound at some time. Do I really need to put a stop loss?
A. This is the worst mistake an investor can make. Some newsletters tell you the virtues of staying put even when the stock loses half of its value. While it is true that many of these losers will ultimately rebound but that may take several months or years. This will tie your money in a dormant stock and may set your portfolio back by several years. Also it is much easier to recoup your money when the loss is small.
