Read books about asset allocation - Tactical vs Strategic.
Cut loss quick is a strategy to prevent catastrophic loss. For example, it you bought a stock and $30, it went down to $20, 33% loss, It needs to rise 50% to go back to where it started. Some reason, if it went from $30 to $3, it needs to rise 1000% to get to where it started. Cut loss quick is to prevent catastrophic loss, like from $30 to $3.
Let wineers run is not to cut your profit prematurely.
Does this stratgy gurantee you can make money? NO.
If you keeps buying stocks like AMR, Nortel, AIG, no one can help you, not even God.
