Ask Yourself This When Thinking About Selling a Stock

by Kurt Box
What investors should really ask themselves when contemplating selling a stock (or mutual fund) is, "What are the consequences of repeating the same purchase? If this security were already liquidated (or I had never purchased it) and would I invest in it again?" If the answer is "no", it's time to sell. If you don't, it is because of the regret of buying a losing stock and the regret of not selling when it became clear that a poor investment decision was made - and a vicious cycle ensues where avoiding regret leads to more regret.
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