On Selling Stocks

Perhaps the most difficult of market skills is knowing when to sell.

There is no one definitive answer, no formula that applies in all situations. To sell within a reasonable distance of the high is probably the best we can hope for, and even that is easier said than done. Since we already know that, invariably, stocks go higher after we sell, it makes sense not to sell all our shares at once. It doesn’t always work and it takes longer, but the odds favor a higher average price if sales are spread out. The most common mistake is selling winners too soon and holding on to losers too long.

Investors sell stocks for many different reasons. Here are some that make good sense: Read more of this post