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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Sooner or Later Selling

Nothing goes up forever, even a hot uranium stock. Yesterday I heard a comedy bit on the radio that contrasted the behavior of passengers on a flight to Las Vegas with how quiet it was on the way back home. Nobody wants to talk about the flight home, it isn't fun, it isn't sexy and it is unlikely to attract more visitors.

The markets work the same way. How many of you have ever been told to sell an investment? Nortel is an example of what can happen in the absence of a selling plan.

Selling isn't fun on losing trades but it can be MORE stressful on a stock that is making big gains. What to do? That is up to you of course. However I offer a suggestion. It is preferable to have a trading plan in advance of your purchase so you don't have to agonize over what to do after you commit your capital.

Books on how to sell stocks are rare. I had purchased over 30 trading/investing books before I ran across Donald Cassidy's book on selling. I read the selling chapters in William O'Neil's books but they didn't sink in for several years.

A book can be purchased for less than the cost of a discount broker commission. I own 3 of these books and consider them as some of my better investments.



Donald L. Cassidy
It's Not What Stocks You Buy, It's When You Sell That Counts.

Justin Mamis
When to Sell: Inside Strategies for Stock-Market Profits.

William O'Neil
How To Make Money In Stocks: A Winning System in Good Times or Bad.

or as a "book on tape"
How to Make Money in Stocks: A Winning System in Good Times or Bad.

or

24 Essential Lessons for Investment Success: Learn the Most Important Investment Techniques from the Founder of Investor's Business Daily.


Advice
Courtesy the Big Picture Speculator