RULE 1 for Traders.

Stubbornly holding on to small losses.

Most investors could get out cheaply but because they are human their emotions take over. You don’t want to take a loss, so you hope, until your loss gets so large it costs you dearly. The rule is to cut all losses when a stock falls 7-8%.

For a dividend re-investment plan, re-invest your dividends at those higher yields than you could have got a month ago.