1. Besides getting rid of "dud stocks" when there are other "market fools" to lap them up, there are several other reasons to dispose off your stocks.
2. When a stock price runs up too high too soon much beyond your target price, due to a random news item or sheer market speculation which have nothing to do with the company, it is better to "pocket your gains" and buy it back at a lower level once you are absolutely certain about its prospects.
3. You should dump your under-performing stock unemotionally if you are convinced of the potential of another stock to earn higher returns, without committing the mistake of encashing your "winners" for this purchase.
4. There are also personal reasons for disposing off a stock, like for portfolio re-balancing, change in your risk appetite, overgrown stock portfolio, or the stock having become too volatile for your liking.
5. Simply put, you should sell a stock when you see no more "logical" or "rational" value left in it - as you can always buy it again after dispassionate evaluation.
2. When a stock price runs up too high too soon much beyond your target price, due to a random news item or sheer market speculation which have nothing to do with the company, it is better to "pocket your gains" and buy it back at a lower level once you are absolutely certain about its prospects.
3. You should dump your under-performing stock unemotionally if you are convinced of the potential of another stock to earn higher returns, without committing the mistake of encashing your "winners" for this purchase.
4. There are also personal reasons for disposing off a stock, like for portfolio re-balancing, change in your risk appetite, overgrown stock portfolio, or the stock having become too volatile for your liking.
5. Simply put, you should sell a stock when you see no more "logical" or "rational" value left in it - as you can always buy it again after dispassionate evaluation.