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When Should I Sell a Stock? Should I Use Stop-Loss Orders?

Investors have it hard enough trying to make sense of the seemingly daily gloom-and-doom headlines coming from Europe. For new and experienced investors alike, though, The Motley Fool is here to answer your questions.

Last week, we put out a call for your investing questions via Facebook and Twitter using the #AskAFool hashtag.

In the video below, I answer a question that came from Facebook: “When should I sell a stock?” My take? This is an incredibly complex question that books have been written about. But that doesn't mean there aren't a few rules of thumb to abide by to guide your buying and selling habits. One big reason to sell is if you've lost faith in the company you've invested with. Another is if you have a better idea for that money.

To submit a question of your own, find us on Facebook or Twitter via the #AskAFool hashtag.

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Managing editor Brian Richards holds no position in any company mentioned. The Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (1) | Recommend This Article (2)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 30, 2012, at 7:49 PM, neamakri wrote:

    First, I try to buy stock that I have researched some and have faith in that company. Then I go for the long haul.

    However I have sold two holdings for cause. (LPHI) has serious accounting misrepresentations and is being investigated by the SEC. (POM) has the worst customer service in the United States. So those two were just not my cup of tea.

    As a dividend investor, I watch those figures. I have sold a couple of companies because their earnings dropped and could no longer support the dividends: therefore their stock price should also drop, so goodbye...

    I hope this helps my fellow Fools.

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