You are not alone in misjudging the risks

associated with FMD. Motley Fool's Hidden Gems newsletter also recommended this stock when it was in low 30's. But I think your problem was you might have fallen love with this stock, which is dangerous. When playing stocks, you will run into blowups like this one from time to time no matter how careful you are with your stock screening process. So my approach is to diversify broadly and holding lots of stocks in the portfolio. In the last several months, I have had many stocks that were cut by a third or half, but overall I'm still doing much better than the market. So be careful with concentrations.