Sell your losing stocks

Every stock portfolio has its dogs

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Investors hang on to underperforming stocks for a variety of reasons, but it usually comes down to emotion. We know someone at the company. We love their products. Or we’re convinced that if we just wait one more quarter, things will start looking up.

They’re not puppies, they’re stocks.

So to cut through the rationalizations, imagine you’re just starting out with a wad of cash in your hand and no stocks in your portfolio. Would you buy each stock you own now at its current price? If not, it’s time to sell the ones that don’t make the cut.

And if you’re still feeling sentimental, just think about the tax savings you’ll get from declaring a capital loss.

2 comments on “Sell your losing stocks

  1. This may be the answer to our prayers.

    Reply

  2. Wait a minute! What happened to buy low sell high? At what point does a stock become low enough that its time to ditch it? Two paragraphs does not an article make. A little more clarification please.

    Reply

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