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.

To be a successful investor you need two main things - the knowledge and the right trading platform. For a trading platform we can recommend try you Zecco and TradeKing.
Zecco offers free stock trades, no account minimum, real time quotes, trading community, and is also insured and protected against loss by SIPC. Opening a Zecco account to benefit from $0 Stock/ETF trading is a smart idea. Free stock trades allow you to preserve more of your wealth and save money, which you can invest instead of paying brokerage commissions.
TradeKing has been rated #1 Discount Broker by SmartMoney’s (the Wall Street Journal Magazine) annual US broker survey. It was also awarded the highest 4-star ranking in Barron's survey of Best Browser-Based Online Brokers. TradeKing platform features real-time portfolio information, advanced order entry, stock, option and mutual fund screeners, customized charting and alerts, volatility charts, a pricing probability calculator, free research and integrated news, and interactive educational information. Open a TradeKing account here

Bookmark this page (CTRL+D) :