2. Investment you own gained a lot

It is ok if you sell if an investment is going worse but what is the reason behind selling an investment which is doing well in the market. It might seem like the natural thing to sell a great investment simply because it has already had a good run. But don’t forget it is doing well in the market.

Usually investments don't always fade out after a good run. This is yet another case of ignoring the investment's long-term potential. The fact is you are likely to be better off, if you stayed away from daily market updates.

3. You need money urgently

Just that you are in need of money doesn’t mean that you need to sell your investments that are doing pretty good in the markets. This is actually considered to a terrible position to be in, and one should avoid at all costs.

Thus from next time before you invest in stocks or funds, make sure that you only invest that portion of your money that you can commit for a long run. Also, it is important to have an emergency reserve in place, invested in a liquid avenue to meet contingencies. This will ensure that you don't have to dip into your investments and liquidate them prematurely.