Many investors wonder when enough is enough and when to cut losses. You can get many different answers around the internet.  I look at the professionals who know what they are doing and have a real track record of profit. One of those professionals is Willim O’neil. He has a track record of monstrous stocks and making huge gains. Another is Gary Kaltbuam, whose firm has not lost one percent in the bear market we are seeing right now.

What do these 2 professionals have in common with each other on cutting losses?  They always, no matter what, cut losses after 8%. Stocks can be very emotional, and becoming emotionally attached to something - especially in the stock market - is not good. You will do things you never would have done before.

What can you do to make sure you cut losses at 8%? Create a stock journal and write down what you bought your stock at. Then put the sell point at 8% below that. In the long run, this will help you trim the losers and keep/add to the gainers.