I always recommend not making your paper losses into real losses. The market always comes back. If you couldn't predict the downtrend then you can't predict when to reinvest in the uptrend. Market timers generally lose. Same thing if you react on a bad market day. "Oh, the market lost 500 points today. I'm going to move everything into a money market." Next day, the market goes up 400 points, the day after, another 200 points and continues up. And, you can't get back in for 30 days or you will have a "wash sale." My best advice - stop being a day-to-day money manager. If you are in mutual or index funds, let the professionals handle your investments.
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