Theoretically, the ability to make money on stocks involves two key decisions: buying at the right time and selling at the right time. To make a profit, you have to execute both of these decisions correctly. Buying a stock is relatively easy, but selling it is usually a more difficult decision to make. If you sell too early and the stock goes higher, you risk leaving gains on the table. If you sell too late and the stock plunges, you’ve probably missed your opportunity. What’s an investor to do? Many investors have trouble selling a stock, and sometimes the reason is rooted in the innate human tendency toward greed. However, there are strategies that you can use to identify when it is (and isn’t) a good time to sell. KEY TAKEAWAYS When it comes to investing, the decision of when to sell a stock is often more difficult than deciding to buy it. In general, there are some intrinsic reasons—related to the stock itself and/or the markets—to sell a stock, and some extrinsic reasons related t...
