Jim Cramer's 3rd commandment of trading is: 'It is okay to take a loss when you already have one.' Apparently some traders believe that when they take a loss it doesn't really count as a loss until they sell the stocks they traded into. Although this seems like a simple problem to avoid, it does go back to the old rule of not falling in love with your trades/stocks/investments.
If your taking a loss on a trade that you have made and you keep making excuses for why you need to stay in the stock it is definitely time to head for the exits! If you feel like you have a strong reason to stay and truely believe the stock will turn around then you should explain the situation to another investor, or even just a friend. If your explanation doesn't make sense to the third party GET OUT OF THE STOCK! Staying in bad trades because you want to believe that you didn't make a mistake is a sure fire way to lose tons of money!
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