If a stock is struggling, look at the company. Forget about what’s happened to date for a moment. If you discovered the company again today, would you buy it? Do some future analysis on the company’s prospects. Don’t let your answer be clouded by negative feelings about the past few months or years. If you bought the stock because you believed that the company was well-positioned for a turnaround due to new and competitive products or services, sales, profits, or other facets of its financial position, hang on a bit more. The last thing you want to do is take a loss on a stock that may turn around a few days or months after you give it the boot. At the same time, if you decide you wouldn’t buy the stock again today, or some of the economic reasons that attracted you to the stock in the first place haven’t panned out, selling is okay.
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