1 Answers: Why would people sell their paper losses and realise capital losses?
luckily this year i have sold some stocks and made 20% on some. I’ve also lost around 5% on some which was the right decision because if I held they would be down even more.
Some others i have not sold and i should have. Some went down badly. One of mine went down 60% at one point, recovered slightly and now is sitting at a 5% loss.
My question is. Why do people realise their paper losses and literally lose money. If its a solid company with solid fundamentals, i.e. Apple, Why would you not wait? Even if I bought Apple at $220, why would you sell now?
I’m now basically dead even on Apple – I bought in May. I could have sold 20% up last month. But I’m still holding because it will go up. I use AAPL as an example because it’s not just that stock, the whole market is having a shocker at the moment.
Am I thinking of this the right way? I am a relatively new investor.