The following is from the May 25, 2008, edition of The Dallas Morning News. Brian Bruce, director of the Finance Institute in SMU's Cox School of Business, provided expertise for this story.
By PAMELA YIP
The Dallas Morning News
Investing requires making tough decisions, but none as tough as deciding when to unload a stock.
"If it's done really well, it's like, when is it going to stop doing really well?" said Brian Bruce, director of the Finance Institute at Southern Methodist University's Cox School of Business. "You're so excited it's done well.
"If it's a stock that's down in price, it takes a lot of discipline to say, 'I've got to take 50 percent of my money off the table.' "
Selling may also mean owning up to an investment blunder.
"It's difficult because you're admitting that you made a mistake," Mr. Bruce said. "And if it's going up, you're worried that it's going to go up [more] and you say, 'Why did I take half of my money out? It just doubled again."
But knowing when to sell is essential to being a good investor because you want to ensure that you're getting the best return for your dollars.
Here are 10 questions to ask when deciding whether to sell a stock:
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