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Recognize when to sell and when to hold from "summary" of One Up On Wall Street by Peter Lynch,John Rothchild
Knowing when to sell and when to hold is a crucial skill for investors. It's easy to get caught up in the excitement of a rising stock and hold on for too long, only to see profits evaporate when the market turns. On the other hand, selling too soon can mean missing out on potential gains. The key is to strike a balance between holding on for long-term growth and selling to lock in profits when the time is right. One way to determine when to sell is by evaluating the reason you bought the stock in the first place. If the original thesis no longer holds true, it may be time to reassess your position. For example, if a company's fundamentals have deteriorated or the industry outlook has changed, it could be a sign to sell. Similarly, if a stock has reached what you consider to be fair value based on your analysis, it may be time to take profits. Another factor to consider is the stock's valuation relative to its peers and historical averages. If a stock beco...
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