Top 50 Rules to Investing - Rule 11
Don't fall in love with your stock; it won't fall in love with you.
Don’t fall in love with your stocks
Investors spend far more time searching for stocks to buy than thinking about when to sell. That is a potentially costly shortcoming, especially in a bull market that is approaching its fifth birthday, which is how old its predecessor was when it ended in 2007.
You should carefully analyze your stock holdings to decide which, if any, should be sold. One general rule of thumb is to subject your stocks to the same valuation criteria that you used when initially deciding to purchase them. If you bought a stock because its price/earnings ratio is well below the market’s, for example, then you should consider selling it if its P/E is now well above.
Guys! Don't Do These Five Things on Valentine's Day.
Courtesy:see more @ http://on.mktw.net/1b6DQ7U
Don’t fall in love with your stocks
Investors spend far more time searching for stocks to buy than thinking about when to sell. That is a potentially costly shortcoming, especially in a bull market that is approaching its fifth birthday, which is how old its predecessor was when it ended in 2007.
You should carefully analyze your stock holdings to decide which, if any, should be sold. One general rule of thumb is to subject your stocks to the same valuation criteria that you used when initially deciding to purchase them. If you bought a stock because its price/earnings ratio is well below the market’s, for example, then you should consider selling it if its P/E is now well above.
Guys! Don't Do These Five Things on Valentine's Day.
Courtesy:see more @ http://on.mktw.net/1b6DQ7U
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