Decision Paralysis....Cut down your losses

It is always better to cut down your losses if your share underperforms in the market. But it is a normal practice or tendency among us, not to sell these shares, with an unrealistic or irrational hope of seeing the share bounce back to normal.

Remember... if your share falls by 50% from the Purchase Value then it should perform at the rate of 100% to come back to earlier state.

But the normal mentality of an investor is to delay this decision of selling the underperforming shares, just because he is not ready to take up looses. This is coined as Decision Paralysis.

Ultimately this delay in decision may lead to further looses in your portfolio. Hence beware of Decision Paralysis.. and prepare yourself mentally to combat yourself out of such situation.