📈 How investing works · Lesson 31
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When should you actually sell?
Good reasons vs bad reasons to hit sell.
The idea
Knowing when to sell is just as important as knowing when to buy. Good reasons to sell: you need the money for a real goal, or the company itself is broken. Bad reasons: you're scared of a dip, or you just want to lock in a quick win. Selling great companies too early is one of the most common ways investors hurt themselves. ✋
Words to know
- Thesis
- Your main reason for buying a stock; if that reason breaks, it may be time to sell.
- Position
- How much of one investment you own.
- Portfolio
- All of your investments added together.
Try it — no account needed
You own 3 shares of a company you bought at $50. Today it's at $90. Should you sell?
In the full lesson
- 1Make the call
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