The stock market has declined a fair bit in the last three months. For a while, there was some panic. Even now, there is probably a lingering sense of unease in the air.
We must know what to do when presented with a situation. Knowing what to do depends on our own set of circumstances and also motivations.
Recently, a reader asked me if she should sell a stock which she said she bought at a much higher price some time ago.
I asked her to consider if she would buy that stock now at the current price if she didn’t buy it at a much higher price earlier.
We want to buy at a price we would not sell at and to sell at a price we would not buy at.
There isn’t a universal right or wrong answer. At least I do not believe there is…