What Steps You Should Take When Your Stock’s Price Falls
The decision to sell a stock should be similar to the decision to buy a stock. But the price paid for a stock must be put aside when deciding if it is time to sell. The sell decision should focus on a company’s future prospects and fundamentals relative to its current stock price. If the reasons for buying the company—i.e., its fundamentals—have not changed, then there may be no reason to sell. Many investors lose sight of this and allow their emotions to dictate their sell decisions.