A lot of investors are (still) making lots of mistakes when selling stocks.
Here is a simple breakdown.
**When to sell?**
\- When the Cashflow and balance sheet deteriorate.
\- When your stock is a cyclical and earnings peaked
**When not to sell?**
\- When the stock is a compounder, which can rise for decades
\- When the stock goes up and you wanna take profits
\- When the stock goes down
As you can see, selling a stock should be INDEPENDENT of the current stock price. It only depends on the fundamentals. You can see when Lynch sold Home Depot or Walmart, it still rise 20fold.
(In my years of experience most of my stocks I sold, happen to be in loss. Nevertheless my portfolio has grown double digits, because I never cut my winners for taking profits. Instead I *let my flowers grow and cut my weeds*)
