How to become a successful investor in stock markets is all about cutting out your losing positions. A good investor never averages positions in the hope that the stock will bounce back. It is all about conviction. The best of investors can only get 70% of their calls right. For the remaining 30% duds in your portfolio, you need to ensure that it does not unnecessarily eat up your resources and your time creating opportunity losses in the process.
When you go wrong, the thing is to know and admit that you have gone wrong. The quicker you take action to cut your losses, the quicker you churn your money and therefore the lesser you stay invested in losing positions. In this process, you do not get stuck to your losing positions and lose money on your missed opportunities.