Stop Loss (#423)

Don't let pride or loss aversion keep you from walking away from bad investments of time, effort or money.

Over the years, I have made several investments, especially in the stock market. Some of these investments have gone well; others, not so well.  

In the past two years, I made some particularly bad investments that led to meaningful losses. What’s frustrating is I could have mitigated my downside through a simple tactic called a stop loss. 

A stop loss is…