With few exceptions, I sell before the end of each calendar year any stocks on which I have a loss. The reason for this timing is that losses are deductible (up to certain amounts) for tax purposes, or can offset gains you may already have taken. Thus, taking losses can lower your tax bill. I might hold a losing position if the growth I expect begins to materialize and I am convinced that my stock will eventually work out. But I do not recommend too much patience in losing situations, especially when prompt action can produce immediate tax benefits.
