How To Quickly Decide If You Should Sell A Stock

Given the unprecedented run-up in the US stock market, you may be sitting on sizable returns on particular individual securities, wondering if you should let it ride or lock in your profit.

You don't want to miss out on future gains. Simultaneously, nobody wants to give up profits if the stock declines. So what do you do?

To be clear, no one, I repeat no one, knows what will happen in the future: your best friend, some guy on the radio, the internet, your doctor, or your financial advisor. None of them know what will happen to XYZ company's share price in the future.

Scratching your head is a waste of energy.

Forget the profit for a second.

Stop scouring the internet. Please don't overthink the situation.

Identify the reason(s) you bought the stock in the first place. If that reason(s) is still in play, consider holding as long as it works within your current financial situation, aligns with your goals, and satisfies your objectives.

If you are unsure of your financial situation, goals, and objectives, you must immediately hammer that out. Write down a quick plan. Even a cocktail napkin will suffice.

Then, go back to the reason(s) you bought the stock. Is it still materializing? Yes. Ok, then hold.

Has the reason(s) you bought the stock played out? Great Job, sell!

The above article represents my opinion and should not be considered a recommendation to buy or sell security. Please consider your entire financial situation before taking action.