Friday, February 15, 2013

WHEN TO SELL A STOCK

When your stocks are showing a nice increase in price per share, it's sometimes difficult to decide when to sell and take a profit.  In my opinion, the best time to sell is when you can pull all your original money out and still maintain a position in the stock.  Effectively you're playing with "the house's money" at this point.  Since you've taken out all the money you initially invested in the stock, whatever it does from then on is just icing on the cake.  Especially in the case of dividend paying stocks.  I've used this strategy many times in the past and plan on using it again to help rebuild my investment portfolio.  

I was talking to a co-worker this past week about having to decimate my investments to cover medical costs related to the heart attacks I've had in the past few years.  While it would be easy for me to just give up on investing, I continue to be optimistic and confident about investing because I know what I'm doing now.  Through the years I've discovered that once you know how to build a substantial investment portfolio, if for whatever reason you have to start over, it's easier to do each time.  In the case of investing, experience can make a huge difference.

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