Before you sell, consider the items in the Seller's Checklist.
| Action |
Comment |
| Sell after a quick profit. |
Easy money is difficult to obtain. |
| Sell after a pre-determined profit. |
Your investment worked out as planned. Congratulations. |
| Don't get greedy. |
Don't try to extract every penny from the stock's upside. Picking
tops is very difficult. |
| Sell if you determine that you just bought on the downside. |
Admit your mistake. The downside is a loser's game. |
| Sell if PDI and CTM indicate prices moved from the upside to the
downside. |
Take your profit before prices fall. |
| Don't sell on price dips on the upside. |
Don't panic Most dips are temporary and the stock will rebound back
to the upside. Use CTM to confirm the drop is not a move to a new
downside. |
| Look out for price bubble. |
A very high p/e, very low dividend yield or significantly above
long-term trendline may signal unsustainable inflated prices. |
| Beware of a very high dividend yield. |
If yield spikes, it might be time to sell. May signal company is
in trouble and can not sustain dividend. |
| Sell if you determine you just bought a stock that you don't want
to own. |
Admit your mistake. You must be comfortable owning the stock. |
| Sell to limit losses. |
Sell before a small loss turns into a huge loss. |
| Consider selling if the company radically changes its business focus. |
It's not the same company you bought. Or a stock in your dividend
reinvestment portfolio stops paying a dividend. |
| Sell to balance your portfolio. |
You own too many stocks in the same sector. |
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