This depends on your trading strategy and overall portfolio composition. You may be able to hold stock at a loss for a longer period if it is a smaller part of your portfolio and doesn't drag your portfolio's value down. An investor may also continue to hold if the stock pays a healthy dividend. Generally though, if the stock breaks a technical marker or the company is not performing well, it is better to sell at a small loss than to let the position tie up your money and potentially fall even further.