How to Sell -- A Checklist, continued
#4. Rounding Out Sell Decisions
- Sell if there's no confirming price strength by any other important stock within the same industry group.
- Sell if two quarters of earnings per share show a significant slowdown in their percentage increase.
- Sell most leading stocks whose Relative Price Strength Rating drops below 70.
- Never buy a declining stock that looks cheap on the way down. Never average down. And don't try to "bottom fish." Why try to catch a falling knife?
- Plot on weekly price charts where you bought and sold your stocks. Study carefully, and learn from your past mistakes so you'll better take advantage of opportunities in the future.
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Related Resources:
Review IBD's 20 Rules For Stock Market Success.
Go to the Investor's Corner Archives to read IBD's "editor picks" of classic Investor's Corner columns.
Search our archive of Ask Bill O'Neil Q & A's organized by topic.
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