Stock Attachment Can Blur Our Judgment
Many investors have their favorites among the stocks they possess. Such stocks have usually returned great gains. However, if you possess such a stock you should keep in mind that time will come when you will have to say good bye to the stock.
In such a case you will probably face the dilemma of whether to keep a stock that has already given its gains and you still hope that it will give you rewards, or to keep a stock that will eventually give you some returns.
The stock history shows that only a small number of stocks manage to grow over a longer period of time. Most of the stocks hit a plateau, which means that their growth is terminated.
If you feel significantly attached to a particular stock just because it has provided you with high returns, you should not be blinded by this and miss the time when you should sell it.
You should pay attention to the achievement of your financial goals. A stock that no longer serves these purposes should not be part of your portfolio no matter how attached you may be.
You may find it difficult to determine the right time for selling the stock since the decline in its price may be due to some temporary fluctuation. On the other hand the stock may have reached stagnation.
Worries about missing future profits may cross your mind. However, you should try to avoid emotional attachment to a particular stock blur your reason and decision making.
Finally, you should not let your emotions cloud your decision as to whether the time has come to say goodbye to the stock that has richly awarded you with its profits.
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