Why are investors quick to sell?
Every investor gets tempted to sell, simply because he thinks investing in the market is like playing a game. They have to act on something. Market goes up, or war happens…
By: Value Research
The psychology behind premature selling
War stops, prices go up, the market falls dramatically. These are all understandable reasons. These are all psychological reasons which actually prompt us.
Sell when you meet your goal
But these are absolutely no reason to sell your investments. There are only two reasons why you should sell. One is that you invest for a goal and that goal has been met.
Should you wait for a better time to sell?
You have been able to achieve that. Sell your investments, don’t get greedy about that.
Sell when the investment starts underperforming
Second is that you chose an investment and that investment has stopped doing well for a variety of reasons. The fund manager has left, the company’s management has turned bad. Sell that investment, change it.
Conclusion
These are the only reasons when you should sell your investments.