A Case Study in Sell Discipline

Today we will delve into two recent stock sales in order to illuminate what I consider to be the two most important elements of "sell discipline." For investors, both professional and individual, sell discipline is given immense verbal respect yet is rarely well implemented in practice.

In my opinion, selling is the single most difficult act in stock trading, because the best time to sell (that is, when the price is highest) is also the moment when the outlook is at its best -- earnings are growing robustly and appear to have years of growth ahead, management is executing crisply, the market opportunity appears open-ended with little strong competition on the horizon. Selling when conditions are lousy is easy ... and you are likely to get a very low price that reflects that lousiness. Selling at the top is very, very difficult, and it requires a true discipline that can take years or even decades to develop....1067 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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