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Byline: David Saito-Chung
Investor's Business Daily
When this column returned to the front page on Aug. 23, 1999, it began with thesingle most important rule for growth investors: Cut your losses short. Always.
Last year was a darn good reason why this is still the No. 1 rule.
The Nasdaq finished 2000 down 39%, its worst year ever. In March, 954 stocks were trading at 50 or higher. By Thursday, those stocks had fallen 51% on average.
No matter how bruising this marke
t has been, your portfolio wouldn't have lost an arm or a leg if you had kept your losses small on each trade.