Author Topic: Help! Stocks lost most of value, should I sell at a loss or keep holding?  (Read 2468 times)

Wayward

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Hello fellow investors! I find myself in a sticky situation and could use some perspective to not make an emotional decision.

The vast majority of my investments are in Vanguard VTSAX, with some VGSLX and VTIAX. I decided last year to play with crypto and individual stocks with a small amount of my net worth, about $7-8,000. Since then pretty much all the crypto and individual stocks I purchased crashed hard. I have sold off the crypto, but have been holding the stocks, which have lost most of their value. The stocks are in a Roth IRA, not a taxable brokerage account, so I don't believe I can tax harvest.

I feel pretty stupid for this mistake as I absolutely love my VTSAX and VGSLX and went against my investment plan to purchase these stocks. Lesson learned. If I sell I will have an actual loss of a few thousand USD and if they recover eventually I will kick myself for not holding. The stocks are in a retirement account so I won't be touching it for a very long time.

Should I sell the stocks at a loss and buy more VTSAX or should I keep holding and perhaps years from now they will recover?

Examples:
RIVN $174.20 (loss $661.30)
RUN $119.20 (loss $277.25)
WKHS $10.68 (loss $318.82)
QS $28.65 (loss $182.35)
LCID $17.60 (loss $137.71)
CHPT $13.51 (loss $149.62)
CGC $5.40 (loss $310.90)

Thank you

Log

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #1 on: November 28, 2023, 10:49:42 PM »
The only question ever needed for these "should I sell or keep holding" questions: if you didn't already own it, would you buy the asset today at the current price?

If your investment plan does not include stock-picking, then the answer is no. Sell them, call this an expensive lesson learned, and put all the money into your Vanguard funds of choice.

ATtiny85

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #2 on: November 29, 2023, 05:13:38 AM »
Yeah, just sell them, buy VTSAX and move on. I doubt you really bought them for the right reason (in-depth analysis, which very few people have the ability to do), so just offload them.

Of course, if you want to keep a couple as your play investments pot and see what happens, it would not be the worst thing. But really, Roth space is pretty valuable, so I would clean it up totally and maybe save up my change and buy a stock or two in a taxable account, if that's what you want to do.

Don't kick yourself about it. Just learn from it. You should also think through how you would feel if one or more of them had gone on an upwards tear. What would you do/have done?

reeshau

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #3 on: November 29, 2023, 06:13:35 AM »
The only question ever needed for these "should I sell or keep holding" questions: if you didn't already own it, would you buy the asset today at the current price?

You are falling for the sunk cost fallacy.  What you paid for them means nothing to the market---only to you.  Clinging to them hoping to "get back to even" is a prison of your own mind.

And, don't look up how they do in the future, unless you have cash on hand and are looking to invest again.  You have buyer's remorse right now.  Don't swap it for seller's remorse.

(To put away for later: if you are really interesting in individual stock investing, learn a rigorous approach.  I follow BetterInvesting, a nonprofit that is primarily a GARP approach)


sonofsven

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #4 on: November 29, 2023, 08:28:12 AM »
When I've done this in the past I held on to them, so every time I logged on to Vanguard I had to see it, as a reminder not to be rash.

Then one day I said "why am I holding on to garbage?", and sold at a loss and reinvested the proceeds.

So, two mistakes, and lesson learned.

Wayward

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #5 on: November 29, 2023, 08:31:04 AM »
When I've done this in the past I held on to them, so every time I logged on to Vanguard I had to see it, as a reminder not to be rash.

Then one day I said "why am I holding on to garbage?", and sold at a loss and reinvested the proceeds.

So, two mistakes, and lesson learned.

That is exactly my situation, I will be selling and reinvesting the proceeds. Thank you!

Financial.Velociraptor

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #6 on: November 29, 2023, 03:52:37 PM »
Sell.


Imagine two investors who are stock pickers.  One sells his losers and uses the proceeds to add to his winners.  The other "takes profits" on his winners and holds on to his losers (waiting for them to break even).

Is it not clear that a few years from now the fist investor will have a portfolio made up entirely of winners that are still on the run (else they would have been sold when then turned down) and the second will have one made up entirely of losers?   Which portfolio is would you rather own? 

If you are going to pick stocks, you MUST learn this lesson.  Sell losers, hold winners.

cl_noll

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #7 on: November 29, 2023, 06:10:26 PM »
I'm going to offer a slight contrarian position. If you still believe in the potential of any of these companies, and it won't hurt you that much to hold, then hold.

Fun fact, as I first started learning the ways of MMM & FI back in about 2016, I owned about $250 of NVDA stock. I rationalized that, since it hadn't moved in the 4 years I owned it, I should just sell it and buy VTI. Which I did. Within weeks or months of selling, NVDA began its meteoric rise and I'd be five-figures richer right now if I held (I haven't done the back calculation in a while since it's too painful!). Good luck!

Wayward

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #8 on: November 29, 2023, 08:51:08 PM »
I'm going to offer a slight contrarian position. If you still believe in the potential of any of these companies, and it won't hurt you that much to hold, then hold.

Fun fact, as I first started learning the ways of MMM & FI back in about 2016, I owned about $250 of NVDA stock. I rationalized that, since it hadn't moved in the 4 years I owned it, I should just sell it and buy VTI. Which I did. Within weeks or months of selling, NVDA began its meteoric rise and I'd be five-figures richer right now if I held (I haven't done the back calculation in a while since it's too painful!). Good luck!

I did keep a few that I really do believe in. You seem to have the same luck as me, I always tell my friends when I buy stock wait a week and it will plummet. I had the chance to buy Tesla and Bitcoin when they were dirt cheap and passed so obviously I can't be trusted and should just stick with index funds. Thank you!

MustacheAndaHalf

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #9 on: November 29, 2023, 11:23:44 PM »
Can you remember what gave you the gut feeling to buy these stocks?

If you watched TV, millions saw the same thing.  If you read a news article, many stock pickers saw the same thing.  You can't win the race to pick stocks by using the same thing as everyone else.

Wayward

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #10 on: November 30, 2023, 06:52:46 AM »
Can you remember what gave you the gut feeling to buy these stocks?

They were all stocks I thought would be good for the future - tech, renewable energy, renewable infrastructure, EV cars, etc. I did read some articles prior to purchasing them, but stock picking is not my forte.

ATtiny85

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #11 on: November 30, 2023, 07:31:25 AM »
Can you remember what gave you the gut feeling to buy these stocks?

They were all stocks I thought would be good for the future - tech, renewable energy, renewable infrastructure, EV cars, etc. I did read some articles prior to purchasing them, but stock picking is not my forte.

Ah yes, and did you think one year was “the future”? (I don’t)

But longer future is no guarantee either of resounding success. Similar to sonofseven, I have a stock that is in the red. HOG, bought back in 2002 or so. Nice red splotch of $700 or so on the list after 20+ years. I might sell it next month as I work to simplify our holdings as we have a number of legacy positions that really don’t bring much. But I have liked seeing my bad pick sitting there in case I start thinking I know anything at all about stocks.

Stimpy

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #12 on: November 30, 2023, 09:24:34 AM »
Can you remember what gave you the gut feeling to buy these stocks?

They were all stocks I thought would be good for the future - tech, renewable energy, renewable infrastructure, EV cars, etc. I did read some articles prior to purchasing them, but stock picking is not my forte.

Future = Someday possibly.... maybe.... if you get lucky.     Someone who bought aapl would have had the same reaction and sold, as it WAS a terrible stock for a long time.     But on the other hand, if you got, idk  <unknown Tech stock from 1995>....  You'd have lost it all in the dot com bubble.  Investing on trends has always been risky, but if they hit big they hit big.   Not saying you should keep those stocks, as Financial.Velociraptor said "Sell losers, hold winners."  Take your lesson, stick to indexes, and if you do decide to try (for fun) again, don't invest in the trend of the day. 
« Last Edit: November 30, 2023, 09:26:20 AM by Stimpy »

Wayward

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #13 on: November 30, 2023, 07:27:02 PM »
Can you remember what gave you the gut feeling to buy these stocks?

They were all stocks I thought would be good for the future - tech, renewable energy, renewable infrastructure, EV cars, etc. I did read some articles prior to purchasing them, but stock picking is not my forte.

Ah yes, and did you think one year was “the future”? (I don’t)

But longer future is no guarantee either of resounding success. Similar to sonofseven, I have a stock that is in the red. HOG, bought back in 2002 or so. Nice red splotch of $700 or so on the list after 20+ years. I might sell it next month as I work to simplify our holdings as we have a number of legacy positions that really don’t bring much. But I have liked seeing my bad pick sitting there in case I start thinking I know anything at all about stocks.

No, I had bought them with the intention to hold them forever, just like my index funds. The losses became something I would see every time I opened my investment accounts and that... sucked. I decided to ask for advice so I can optimize my holdings and not make another mistake based on emotion.

ChpBstrd

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #14 on: December 12, 2023, 01:39:31 PM »
What's your estimated top tax bracket? I'd be inclined to take the bird in hand, in the form of tax loss harvesting.

WayDownSouth

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #15 on: December 13, 2023, 06:17:27 PM »
RIVN $174.20 (loss $661.30)  SELL
RUN $119.20 (loss $277.25)   HOLD
WKHS $10.68 (loss $318.82)  SELL
QS $28.65 (loss $182.35)       SELL
LCID $17.60 (loss $137.71)    SELL
CHPT $13.51 (loss $149.62)   SELL
CGC $5.40 (loss $310.90)      SELL

That's my personal advice for you. My next advice is don't jump in like that because all those buys you made were without any real merit.

I won't beat you up too much but don't do this again. Consider it a lesson learned.

ProTip: Setup a notification that will advise you if/when RUN hits $42 per share. Until then don't even bother looking at the value. Hold it for the long term. Setup another notification for if/when it hits $6 per share and if it does, SELL then and eat the loss.

« Last Edit: December 13, 2023, 06:21:05 PM by WayDownSouth »

Morpheus

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #16 on: December 17, 2023, 02:20:20 AM »
RIVN $174.20 (loss $661.30)  SELL
RUN $119.20 (loss $277.25)   HOLD
WKHS $10.68 (loss $318.82)  SELL
QS $28.65 (loss $182.35)       SELL
LCID $17.60 (loss $137.71)    SELL
CHPT $13.51 (loss $149.62)   SELL
CGC $5.40 (loss $310.90)      SELL

That's my personal advice for you. My next advice is don't jump in like that because all those buys you made were without any real merit.

I won't beat you up too much but don't do this again. Consider it a lesson learned.

ProTip: Setup a notification that will advise you if/when RUN hits $42 per share. Until then don't even bother looking at the value. Hold it for the long term. Setup another notification for if/when it hits $6 per share and if it does, SELL then and eat the loss.

What's so special about RUN? What are you seeing that the rest of the market doesn't? (Genuine question)

WayDownSouth

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #17 on: December 17, 2023, 01:26:15 PM »
RIVN $174.20 (loss $661.30)  SELL
RUN $119.20 (loss $277.25)   HOLD
WKHS $10.68 (loss $318.82)  SELL
QS $28.65 (loss $182.35)       SELL
LCID $17.60 (loss $137.71)    SELL
CHPT $13.51 (loss $149.62)   SELL
CGC $5.40 (loss $310.90)      SELL

That's my personal advice for you. My next advice is don't jump in like that because all those buys you made were without any real merit.

I won't beat you up too much but don't do this again. Consider it a lesson learned.

ProTip: Setup a notification that will advise you if/when RUN hits $42 per share. Until then don't even bother looking at the value. Hold it for the long term. Setup another notification for if/when it hits $6 per share and if it does, SELL then and eat the loss.

What's so special about RUN? What are you seeing that the rest of the market doesn't? (Genuine question)

A better question would be who is "the rest of the market" you're speaking of?

First, the company has a huge upside potential. Second, he's already holding it and it's the middle ground of his losses (according to him) so it'd be wise to hang onto that and ditch the rest from a logical perspective. Third, the stock was injured by high finance rates and their business model relies a lot on financing, so as interest rates begin to ease, this stock will pickup a lot of steam. Fourth, technical analysis shows it was (and still is) on a great path especially when factoring in the interest rate issue. Fifth, there a lot of micro AND macro catalysts that look very favorable for them. Sixth, they're a main player in their industry and offer financing schedules that many competitors cannot match. There's much more if you want to investigate.

I'm not advising people to go out and buy it, I'm telling you why I'd recommend that he holds it. The potential upside is excellent from where he stands right now and there's no reason to dump it considering his other losses and the positions he shared in his OP.

mistymoney

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #18 on: December 17, 2023, 04:01:59 PM »
RIVN $174.20 (loss $661.30)  SELL
RUN $119.20 (loss $277.25)   HOLD
WKHS $10.68 (loss $318.82)  SELL
QS $28.65 (loss $182.35)       SELL
LCID $17.60 (loss $137.71)    SELL
CHPT $13.51 (loss $149.62)   SELL
CGC $5.40 (loss $310.90)      SELL

That's my personal advice for you. My next advice is don't jump in like that because all those buys you made were without any real merit.

I won't beat you up too much but don't do this again. Consider it a lesson learned.

ProTip: Setup a notification that will advise you if/when RUN hits $42 per share. Until then don't even bother looking at the value. Hold it for the long term. Setup another notification for if/when it hits $6 per share and if it does, SELL then and eat the loss.

weird. run is up like 45% since you posted this. like the next day really....

Like EF hutton

WayDownSouth

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #19 on: December 17, 2023, 04:22:30 PM »
RIVN $174.20 (loss $661.30)  SELL
RUN $119.20 (loss $277.25)   HOLD
WKHS $10.68 (loss $318.82)  SELL
QS $28.65 (loss $182.35)       SELL
LCID $17.60 (loss $137.71)    SELL
CHPT $13.51 (loss $149.62)   SELL
CGC $5.40 (loss $310.90)      SELL

That's my personal advice for you. My next advice is don't jump in like that because all those buys you made were without any real merit.

I won't beat you up too much but don't do this again. Consider it a lesson learned.

ProTip: Setup a notification that will advise you if/when RUN hits $42 per share. Until then don't even bother looking at the value. Hold it for the long term. Setup another notification for if/when it hits $6 per share and if it does, SELL then and eat the loss.

weird. run is up like 45% since you posted this. like the next day really....

Like EF hutton

It's not weird, it's just knowledge and experience. The day before the DOW jumped 500 points and hit it's all-time historic record I mentioned the DOW will be doing exactly that within the next few days. It's not magic. I'm not bragging either. I just know a lot because I've been a day trader for a long time and also an expert in research and analysis.

Want to know something else? Here's a free tip.... Ignore everything that mainstream analysts say because at least 80% of them aren't allowed to speak their minds and publish their true feelings, thoughts, or ideas on stocks. In fact, I've met several who privately admitted to being paid to provide analysis that's not genuine.

The more you know........

WayDownSouth

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Re: Help! Stocks lost most of value, should I sell at a loss or keep holding?
« Reply #20 on: December 27, 2023, 01:05:54 PM »
RIVN $174.20 (loss $661.30)  SELL
RUN $119.20 (loss $277.25)   HOLD
WKHS $10.68 (loss $318.82)  SELL
QS $28.65 (loss $182.35)       SELL
LCID $17.60 (loss $137.71)    SELL
CHPT $13.51 (loss $149.62)   SELL
CGC $5.40 (loss $310.90)      SELL

That's my personal advice for you. My next advice is don't jump in like that because all those buys you made were without any real merit.

I won't beat you up too much but don't do this again. Consider it a lesson learned.

ProTip: Setup a notification that will advise you if/when RUN hits $42 per share. Until then don't even bother looking at the value. Hold it for the long term. Setup another notification for if/when it hits $6 per share and if it does, SELL then and eat the loss.

OP if you're still here and haven't yet sold everything, and if I was able to keep you in RUN, my advice to you right now as I'm viewing this would be go put all the remaining money from the other investments which I marked as "sell", as well as any others you didn't list (the cryptos too) into RUN right now before it really takes off. Just FYI it's friendly advice, I'm not a financial advisor, just trying to help if it's not too late for you.

*If you already sold everything, don't go taking out extra cash or moving cash around to buy a ton of RUN. I'm not advising you to invest heavily in RUN. But if you had a few grand remaining from your losses, and if you are still holding the RUN as I advised, I'd put that few grand in RUN right now and continue with the same instructions from the post above regarding the setup of notifications.