How do you know when to sell your winners? Isn’t success all about knowing when to sell?
Absolutely--selling is just as important to your investing success as buying. Investors must understand that capitalism is very dynamic and situations change. Many industries have very precise cycles. There are lots of folks on Wall Street who will tell you when and what to buy, but they never seem to be heard from when it’s time to sell.
As I said earlier, I shut off my emotions and follow my quantitative and fundamental guidelines. For example, I remember when I recommended Hansen Natural (HANS), the Monster Energy Drink stock, to subscribers of my smaller-cap newsletter, Emerging Growth . The stock doubled very quickly and then had a minor pullback. I think half of my subscribers were dying for me to issue a sell recommendation! They were following their emotions, but Hansen’s fundamentals were still strong, so we stuck to our guns. Sure enough, the stock came roaring back and we later sold it for a ten-fold gain—1,125% to be exact!
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| Video Demo |
| Stock | Symbol | Grade | |
|---|---|---|---|
| BP PLC (ADS) | BP | B | BUY |
| Chevron Corp. | CVX | B | BUY |
| Exxon Mobil Co | XOM | C | HOLD |
| Hess Corp. | HES | A | BUY |
| PetroChina Co. | PTR | B | BUY |
| Sunoco Inc. | SUN | D | SELL |
| Tesoro Corp. | TSO | F | SELL |
| Stock | Symbol | Grade | |
|---|---|---|---|
| Brinker Intern | EAT | C | HOLD |
| CBRL Group Inc | CBRL | D | SELL |
| Cheesecake Fac | CAKE | C | HOLD |
| DineEquity Inc | DIN | F | SELL |
| P.F. Chang's C | PFCB | C | HOLD |
| Ruby Tuesday I | RT | F | SELL |
| Ruth's Hospita | RUTH | F | SELL |







