When to sell a stock?

Fisher suggests 3 reasons a stock must be sold.

When a mistake has been made

This is the most obvious reason to sell a stock – when you realise that it was a mistake to buy it in the first place.

When you realise that the actual background (business, performance) of the company is less favourable by a significant margin than what you had thought when you had bought the stock, it makes utmost senses to sell it.

Also, while you must sell your stock if you realise that a mistake has been made, the losses from that sale must never cause self-disgust. And neither should these losses be passed over lightly.

You need to review these losses so that you take a lesson out of the same, and do not repeat the same mistake in the future.