This post was originally shared in my DT Email Newsletter here.
When I started investing 16 years ago, I’d sell my shares once prices became “too high”. I’d sell my shares if the prices didn’t move at all. Put it this way, I wasn’t very patient.
And I took whatever quick profits I had. Often, it was quick losses.
The funny thing was the more I did this, the more I was trying to chase my own tail. I couldn’t sit still.
I spent more time trying to “time the market”, than to be a true investor who owns assets. I know, it’s hard.
And I can tell you for a fact, most people don’t know when to sell their stocks. Sometimes, they’ll exactly sell it at the wrong time.
Out of the many lessons learnt, I think the one which frequently pulled me out of danger is knowing when to sell a stock.
You see, buying stocks is easy.
And there’s so much advice out there telling you when to buy. But that’s only half of the investing coin.
The hard part, in my opinion, is knowing exactly when to sell.
Here’s 5 simple rules to know when to sell a stock.
Sometimes, investing can be simple.
Willie Keng, CFA
Founder, Dividend Titan
