I've lost 50% on two stocks. Help!

[Olde Hornet]

Interesting advice about when to sell an individual stock. My question for Matt would be:

1. If the drop of the price is due to broad market moves, but the company is sound and its a long term purchase, does his 10% rule still apply?

http://www.usatoday.com/story/money/markets/2015/10/22/lose-cut-losses-50-half-stocks/74297490/

Q: I've lost 50% on two stocks. What now?

A: Now you know the risk of buy-and-holding individual stocks. The best thing to do now is to not repeat this mistake.

In in your note, you explained you've lost more than half your money on computer chipmaker Advanced Micro Devices and also video-game maker Zynga. Both of these stocks have been wealth shredders. You paid $6 a share for AMD, which is now trading for about $2 a share. And you paid $4 for Zynga, which is trading for about $2 a share, too.

 

[jsupop33]

Man,
There is this healthcare related stock I threw some money behind about 2 years ago, expecting it to be a big player in some of the obamacare rules. A few months later, the administration struck the employer mandate and they dropped 40% and have never recovered. I kept holding on hoping to recoup but I have finally accepted that they just won't see the money they would have originally seen because of the bill being gutted some.

 

[Olde Hornet]

Man,
There is this healthcare related stock I threw some money behind about 2 years ago, expecting it to be a big player in some of the obamacare rules. A few months later, the administration struck the employer mandate and they dropped 40% and have never recovered. I kept holding on hoping to recoup but I have finally accepted that they just won't see the money they would have originally seen because of the bill being gutted some.

When you have a profitable year, you can sell them off to reduce your gains