Sell Your Stock If . . .
You made a big boo-boo. If you realize that your reason for buying a stock was flawed, admit it and unload the shares.
You made a big boo-boo. If you realize that your reason for buying a stock was flawed, admit it and unload the shares. For example, maybe you bought what you thought was a safe, conservative bank, only to discover that it's heavily exposed to subprime mortgages.
There's been a seismic shift. Sometimes the fundamental structure of an industry or the position of a company within an industry changes dramatically. For instance, the newspaper business is under pressure because advertisers are moving to the Web.
Management is sketchy. Perhaps you're wary of the newly named CEO. Or you're concerned that company officials who tout shareholder value are spending billions on a questionable acquisition.
A bubble is in the making. If you think the market has driven the share price higher than is warranted, consider taking some or all of your money off the table.
You spot a better opportunity. Maybe there's not much wrong with your stock, but you find a more interesting investment at an attractive price. Go for it.