Morningstar had an interesting article on managing risk. Problem with the author’s methodology is that it is way too subjective. People are emotional about money. You need to have a pre-determined “puke” point where you get out no matter what. You cannot make decisions about money on the spot. Remember: Price moves first, then the fundamentals follow. Unless you’re a CFA and do this for a living, take your small losses regularly and move on.
