      If the stock that you are trading has declined in value, you havetaken a loss in that trade. Don't fool yourself by thinking that, becauseyou have not sold the stock, you have not lost any money. This is wrong —very, very wrong. It is sometimes easier to frame this concept by saying toyourself, "I have already exited this trade at a loss of $X. Do I like thestock at this level? Would I buy the stock at this level here and now, orwould I pass on the trade?" If the answer is "Yes, I like the stock at thislevel," then buy the stock. (You don't actually buy more shares, becauseyou already own them. What you do is don't sell them.) If your answer is"No, I don't like the stock at this level, and I will pass on the trade,"then don't buy the stock. (Since you are already long the stock, you needto exit the trade and move on.)