Most investment research is based on one thing, and one thing only: Finding the best opportunities to buy.
There’s nothing wrong with that. It’s a good thing in and of itself. After all, if you don’t make a good buy in the markets, you’re pretty much guaranteed to lose money.
But what happens when things go well?
- Massive Ocean of Energy Found Under Las Vegas Strip
The gambling capital of America could soon benefit from the largest energy revolution in history. A massive ocean of energy exists directly beneath the shiny lights of Sin City … and early investors stand to make a fortune. To continue reading, click here…
That’s where the trouble starts.
That’s because most investment research doesn’t tell you anything about when to sell a position you hold—whether it’s gone up or down.
Many investors use rules like stop-loss orders. But that also causes them to lose their shares while a stock’s price is temporarily down.
Even short-term traders use rules like this—which limit their losses, but can also prevent their gains from working out as well as they could.
For investors focusing on wealth-compounding stocks, however, selling can be considered the exception rather than the rule. Investors who sell a stock capable of compounding their wealth need only do so under some very specific, and potentially dire, circumstances. A normal market correction just won’t cut it.
With all the focus on buying, don’t forget the other half of investing—knowing when, or even if you should sell.