How to assess the success of investments?
Because the investment strategy is drawn up individually, there is no unique instruction for determining profitable or unprofitable positions. It all depends on your goals and risk tolerance. At the same time, the reasons for selling different shares may be different.
If you bought shares in the long-term relying on the fundamental indicators, the reasons for selling shares must also be fundamental. That is, the company's reports should show that growth, assessment and dynamics have become less favorable, and it can no longer ensure positive news.
The beauty of the long-term investing is that you don't have to worry about minor market corrections which happen all the time. If your companies are fundamentally strong, your long-term goals won't be affected by such drawdowns.
However, in case of short-term investments, if the drawdown has reached your limit of possible losses, you will have to lock in the loss because there is a risk of greater loss. Remember, if you have reached your maximum risk in the first month while you have a one-year investment period, it means that you have built your portfolio incorrectly and you need to rebalance it.
*On the whole, you should assess the success of the entire portfolio, not individual shares. If you really paid a lot of attention to selection of shares, the portfolio will grow even though some of its positions are down.
Research shows that the less often you change the composition of your portfolio, the higher its yield will be in the long run. Don't try to cheat the market and don't panic. Even when you see the headlines about the coming stock market apocalypse, try to keep a cool mind and make decisions based on your investment strategy, not your emotions or the latest headlines.