When to really sell a stock

An investor's decision to sell stocks is largely influenced by a flurry of emotions, wherein the current price of the stock and the cost of the stock act as major anchors. Investors often sell a good stock prematurely, hold on to a bad stock for too long, ride a momentum play only to see it backfire, and sell a stock at a loss in fear that it may fall further. In reality, neither the stock price nor its cost should play a role in the selling decision. Ultimately, the strength of the business and its current valuations matter. An inves

This article was originally published on August 13, 2019.