When Not to Sell Stocks

Warren Buffet says we should buy low and sell high.

But, the hardest part of investing is not selling your investment when it continues to go lower even though the fundamentals of the company has not changed.

I have this one particular stock that went to a low that I was not comfortable with and I wanted to sell. Before, I decided to create a transaction to sell I researched to see if any new news came out, or if the company fundamentals changed.

After researching the matter I found out nothing changed and the fact was the market did not like that stock and my stomach was in knots. What should I do cut my losses and move on or stay the path?

After thinking about Warren Buffet words buy low and sell high and Charlie Munger words if you can't think with a company that goes through lows, you don't deserve to be with the company when it riches new highs.

With my research and words of Buffet and Munger I decided not to sell and to stay the course. Today I learned that company raised millions more through old investors and that made the market like the stock a little today.

So, instead of being at an uncomfortable yesterday - it reached a comfortable price today. But, one or two days is not that name of the game for individual investors. We must have a long term view and pray that our mind and stomach can take the up and downs of the market.

If the reason you brought the company is the same and no new negative news that would jeopardize the future of the company bottom line I say keep pushing to see what will occur. Never buy a stock without a hypothesis (that will be your why) and it will help you when the market is not reacting to the stock favorably.

Just because a stock hit new lows, it does not mean it is time to sell.

Calm down and go back to your why