If you buy any stock and the stock's price fall then what to do? It often happens with us. You buy a stock and you know that you buy the stock in intrinsic value
But after buying the stock the stock's price starts to fall. In this situation there is many confusion.
What to do with the stock such should you sell the stock or hold the stock or buy more stocks and do average of the stock?
Many people think that they should sell the stock when stock price falls. Is it a wrong option? See,,,option is not right or wrong.
It is depended on why the stock price falls and what is the problem of it? If stock price falls because of a permanent problem
you feared that the company will close their operations permanently then you should sell the stock. Now come to second option.
Now the question is when you should hold the stock? If it is seemed to you that the company faces the problem temporary not permanently