When to sell a stock

If a company is not producing expected results, profit disappointment sets in. Fundamental results __ an expected product announcement, a technology breakthrough, patent award, sales increase, earnings turnaround or dividend boost __ must occur to generate profits. If this does not happen, the stock loses supporters and, eventually, the price takes a deep decline. When fundamentals fail, the implication is very clear: sell the stock, do not hold it. It can always be bought back later if the fundamentals do come through. Remember if you are below your buying price, the sell actions don't make you lose money since you have already lost the money.

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