When To Dump Your Funds
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.