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Selling - A Critical Component

 Buying shares is easy... knowing when to sell them can be extremely tricky. After all, you want to maximise your return on risk, don't you?

Nah, not always. In fact, if you stick to a plan, selling is easy. For example, if your plan is to sell when you have a 25% profit, then you set an automatic sell at 25% above your buy price and let the system do its thing.

Sometimes you have to sell a winner because of other pressures in your life. Perghaps you have:

a tax bill

A new baby

An upcoming holiday

An unexpected expense

And you have to raise some quick cash. Ok, sell and move on.

Sometimes you have to make the decision to dumpa stock at a loss. You bought in and it looked good, but it didn't pan out. You have waited and all the price has done is go south.

Perhaps it is going to be better to sell and put your money into a winner and let the loser go. With a plan you can make your losses back, and usually quite quickly.

Me? I just sold DXB at a nice profit... bought at .275 and sold at .405. Even though DXB is positive and still has some upcoming good news, I have a daughter going on Student Exchange for a year and an exchange student about to land in our house. So expenses are up, and that's why I invest... to cover off on those expenses (and to buiild wealth, of course).

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