Question

Investors sell stocks at the:

Answer 1

Making money on stocks involves just two key decisions: Buying at the right time and selling at the right time. You've got to get both of those right to make a profit. There are only three good reasons to sell:

• Buying the stock was a mistake in the first place
• The stock price has risen dramatically
• The stock has reached a silly and unsustainable price

Read on for more on all three of these good reasons to sell. But first, consider a couple of common mistakes to avoid when you're buying and selling.

Timely selling does not require precise market timing. Few investors ever buy at the absolute bottom and sell at the absolute top.

Warren Buffett couldn't do it. He and other legendary stock pickers focus on buying at one price and selling at a higher price.