Market Quotes - Irrational Market

"The Market can stay IRRATIONAL far longer than You and I can stay SOLVENT"

I've heard this one before quite a few times..not exactly sure who deserves credit though. That's a shame because the above quote is basically a market adage. Bottom line is, Don't be Afraid to CUT your Losses. That capital you free up just might be the difference between you getting wiped out of the market altogether. It really can be that crazy of a 'game' if you do not know what you're doing/investing in. The market moves without emotion...it'll take your money without giving a turd. For example, like most investors last year, my domestic U.S. financial + retail stocks performed HORRIBLY in 2007. During the Subprime mortgage CARNAGE I forced myself to sell Citigroup (C) down from my cost of 55 to 35. I also gave up and cut my losses on the hideous looking Sears Holdings (SHLD) down from a cost of 180 to 150 (in like 3 weeks BTW). During that same month I chose to liquidate my position in regional bank Downey Financial Corp (cost of 60, sold at 38). Large LOSSES and I def spent a good amount of time kicking myself for those tough, expensive bets that went awry.

With all that said, their prices TODAY (about 6 months later)? Citigroup's at $24.63 (down 30% from my sale) ...Sears is at $96.95 (down 35%) and Downey's trading at $13.37 (down 65%) !

Yeah that doesn't change the fact that I got them wrong in the first place..but props to my guiding DOME for not letting me STAY wrong. A Valuable Lesson fo' sure.