No. of Recommendations: 1
That is the question, when does it make sense to sell?

IMO, your decision to buy should always be made with a predetermined (but fluid) decision on when to sell. The strategy used is not nearly as important as simply having a strategy.

Some people might use SMAs, others might simply use floors and ceilings (i.e. "if it drops more than X% from either my purchase price or from peak, it is sold and if it moves above X% from purchase price or increases more than X% over Y period of time, it is sold), or you might us various financials to determine when to sell. You could use one of the hundreds of buy/sell/hold recs put out by various financial companies.

Regardless of what you use, it is best to make that decision before you buy. That way, you take a lot of the emotion out of when to sell. Doesn't keep you from changing your mind as either new information is available or situations change but if you wait and try to make the decision in the middle of a sell off, it will always be more complicated and likely more wrong.
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