Reuters - Video

EDITION: U.S. | U.K. | IN

Investing 201

When to dump a winner

Tuesday, Sep 24, 2013 - 01:55

Feeling good about owning Netflix? Did you buy Tesla before the Model S? These stock-standouts might be lighting up your portfolio, but a big decision awaits you: when to sell? Here are three simple rules to help.

▲ Hide Transcript

View Transcript

There were several times tonight so he just goes to fear we bought the stock probably in the twenties or thirties we sold -- fifty or sixty the stocks -- a 110 today. To -- kick myself sure. Those are hard Wall Street guys with deep. Deep regrets but you don't have any right you've been writing Netflix since before house of cards. And you look -- that when you're on month was a mere mortal while. That was easy the hard part is deciding when to sell the pros agree you've got to have discipline. And we boiled it down to these three simple rule rule number one. So your stock as it approaches your price target or exceeds fair valuation. Nicklaus golden -- CEO Pete and advisors and loads in. -- that key is you have to be able to sleep at night. He says you know if you have a stock keeps going up. And really nervous about it you know it's over valued and you just are staying with it because of the momentum that's not a reason. Rule number two -- if you're worried about management especially new man. Tom Forester laments holding onto the stock of Hewlett-Packard. Even though he knew that HP's new CEO Leo pop per SEC had no experience with hardware. The stock got cut nearly in half on your pocket very short range. Rule number three so what earnings or sales deteriorate. Forrester says he's finally sold HP when the write -- started piling up. And it just started happening you know a couple quarters and time again. At some point we just like field. It always comes down to the rarest of disciplines. Not letting greed from reasons.

When to dump a winner

Tuesday, Sep 24, 2013 - 01:55

Top News »

The Exchange »

Moving Pictures »