Risk control should be at the heart of every investment decision. But despite our best efforts, some investments may not turn out the way we expect. A host of factors such as competition, macroeconomic conditions, industry changes, and even management decisions play a role in determining how an investment fares. It’s natural to end up with a portfolio where you have a mixture of winners and losers. Among the losers, some positions may even be down 50% or more, as evidenced by the recent crash in high-growth stocks due to a combination of inflation and surging interest rates. The question you may ask is – what should you do with investments that have lost half their value? Is it better to adopt a wait-and-see approach, sell the position to free up the cash, or buy more? Sizing your positions A word of advice may do you good at this point. Before purchasing any investment, you should think about...