If You're In Trouble, Stop Digging

My father always said that "when you are in the hole, you need to stop digging." The principle is a good one to live by when trading the stock market. As a general rule, I don't like to average down into losing positions. In addition, when I find the stocks I own or the recent trades I make start to become unprofitable, the best step is often to stop trading. If you live by what you make in the market, this is a hard thing to do, but absolutely necessary. From time to time, Mr. Market doesn't give gains very easily. The key is to avoid those tough times while profiting handsomely when the worm turns.