3 Terrible Reasons To Sell An Investment


BANGALORE: One of the most important aspects of investing is to know when to sell it. In fact, knowing when to sell can be as important as knowing when to buy. It's rather doubtful that you will hold most investments forever and hence you will need to sell them from time to time. It is vital that whenever you sell an investment make sure you sell it for the right reason. Furthermore, the reason should stem from your own investment philosophy and your investment-selection criteria.

Let’s have a look at some of worst scenarios that you need to sell your investment:

1. The investment you took had lost a lot

This is one of the most common scenarios. It is true that we usually give attention towards the ups and downs of an investment's price; but the investment's price movement doesn't tell you much about the investment's future predictions.

It is obvious that when a stock you own fades poorly you become tempted to sell it off but have you thought about what good that investment will do to you after being sold off. If you really like the investment and continue to be convinced about its prospects, perhaps you should take advantage of the lower price to buy more.