Just when I thought it might finally turn around, things
suddenly took an unexpected turn for the worse.
It's not what you think!


You might be assuming I'm talking about watching shares
of
CIT Group (NYSE: CIT) soar from its March
lows, only to hit an all-time low just a few months later
amid bankruptcy rumors.
But I'm actually referring to something much more painful
for me personally: watching Sam Bradford go down hard in the
first game of the season, followed shortly by the rest of my
beloved Oklahoma Sooners.
My grandfather played football for Oklahoma, and I've been
a Sooners fan since I was old enough to walk. So it's been
nothing short of devastating to watch Oklahoma lose five
straight BCS bowl games and three straight national
championship games. And you know what? I really believed
thismight be
ouryear.
Of course, I'll
alwaysbe a Sooners fan, even though they're now the
Buffalo Bills of college football. After all, in sports,
sticking by your team through the ups
and the downsis a virtue. Just ask any Green Bay
Packers fan. (Believe it or not, I'm a Packers fan, too.)
Wall Street is a different ball game
For proof, just ask any longtime "fan" of:
Stock
10-Year Return
AT&T (NYSE: T)
(20%)
Honeywell (NYSE: HON)
(25%)
Sprint Nextel (NYSE: S)
(93%)
Sirius XM Radio
(98%)
Data provided by Yahoo!
Finance.
Or ask my fellow Fools
Rich Greifneror
Adam Wiederman. Or even ask Jim Cramer. In his book
Real Money, Cramer reminds investors, "This is not a
sporting event; this is money. We have no room for rooting or
hoping."
Yet it happens all the time. Investing message boards are
full of desperate investors who hope some cash-rich behemoth
will come along and save their decades-old American
superbrand. But as Circuit City investors found out, this is
often a losing bet -- especially in this credit-strapped
market.
Others ride stocks all the way into the ground because
they're emotionally attached to the company's story,
products, or management -- and meet with similarly dismal
results.
I, for one, am sitting on a major loss in
Clearwire . If we're being honest, the only
reason I bought shares in the first place was because I liked
that it was backed by
Google (Nasdaq: GOOG),
Comcast (Nasdaq: CMCSA), and a handful of
other tech heavyweights.
Ditch that loser!
One of the "20 Rules for Investment
Success"Â from
Investor'
s Business Dailyis to "cut every loss
when it's 8% below your cost. Make no exceptions so you'll
avoid any possible huge, damaging losses."
To a sports fan, that advice might seem cruel and unusual,
but it's actually good investment counsel. Or is it?
To find out, I dug through David and Tom Gardner's
Motley Fool Stock Advisor
picks. They often re-recommend a stock even after a big
run-up -- or a sharp fall. I actually found two examples
where
breaking
IBD's rule actually paid off big-time:
Stock AdvisorPick
Decline After Recommendation
Gain After reRecommendation
Netflix
23%
199%
Quality Systems
14%
1,141% Continued... |