6/6/2014
By Charles Payne

I got a couple emails from people looking to sell a few of their holdings: one of them to pay for a wedding, and the other to help his son expand his business.

When to sell is always tricky, but it’s easier when you need the money and can’t fret about profits or loses. However, when you’re saddled with losers, closing them is the hardest thing in the world to do.

Obviously, nobody likes to lose money, but the real reason people don’t take those hits is pride and ego.

Pride - Feeling of satisfaction based on achievement

Ego - Feeling of self-importance not based on fact

By dumping a stock at a loss, you are messing up your track record. Even if you got the idea from someone else, it’s a knock on your decision to listen in the first place.And it’s hard to feel important after taking a hit to the wallet – only the biggest narcissists aren’t affected.

Biggest Mistake

If you’re stuck in a portfolio with very little or no money to buy more stocks, then you are making the biggest mistake possible.

Don’t Be Victimized Twice

From

One Mistake

So, you bought XYZ at $20 and now it’s at $10; it’s extremely unwise to have no additional funds and refuse to buy another stock until XYZ comes back!

A stock going down can, and will, happen to everyone – it’s a single mistake. Holding a dead stock while other stocks are soaring is the second mistake. This is on you and can cast a shadow that negatively impacts your investing for years.

Charles Payne
Wall Street Strategies

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