4. The Fundamentals of the Investment Change

Fundamentals relate to almost anything related to the economic well-being of a company. They include revenue, profit, company’s market share, ratios etc. The quantitative fundamentals can be watched and compared since they are in numbers. However, qualitative fundamentals like management, brand perceptions etc. are difficult to quantify or compare. When any of these parameters move in a direction you don't want, it can be time to sell. When a mutual fund manager changes his portfolio from what it was when you bought into, it might be time to sell.

5. The Investment Doesn't Live Up To Expectations

How much of consecutive underperformance is acceptable and for how long. People tend to forgive the management of the company or mutual fund by saying, "what goes down must come up". Try to compare the performance with other peers in the sector. The decision to sell when earnings are low is complicated because of the lower valuation. Determine how much risk tolerance you have and the possibility of the company doing better before selling.