All investors sometimes make mistakes and buy stocks that start falling the very next day. What to do then? Should you wait for them to come back? Should you sell them? When do you sell them and when do you keep them? This is something I will talk about in this article. I will try to help you by explaining my method of deciding when to sell stocks and when to keep them.

The method is actually very simple and helps you eliminate the emotional factor in making this decision. The question you have to ask yourself is this. If you would not have this stock at the moment, would you buy them at a given price or not? If your answer is yes, then keep them, if your answer is no, then sell them. Why?

Well because if you wouldn’t buy them, then you think they are worth less than the current price (SELL!) if your answer is yes, then this means that you think they are worth more that the current price, therefore DON’T SELL!

With this simple questions you eliminate any emotions that may make you keep the stock eventhough you know deep inside it’s worth even less than iot current price and that it probably won’t come back to what you have bought it for.