Question

Patrick guitman wants to protect himself against losses in his investments after the purchase. to do this, he should monitor the value of his investments to determine if he should hold, sell, or increase his stake in a specific investment.

Answer 1

Correct, by monitoring the value of his investment he will be able to see the gain or loss he is realizing. Therefore if his investment is losing its value he may want to consider selling it before he notices too much of a loss.