Investing Myth: Why Selling at the First Loss Is a Rookie Mistake

This analysis suggests that re are many rookie mistakes, and I've bably made most of them

One of the worst is selling a good stock too soon (an important development)

Market analysis shows can happen when you sell a stock at the first loss, and it can happen if you just have a short attention span and see some other exciting stock that's caught your interest (something worth watching)

It can also happen if your stock has headed south and you sell without taking the time to dig deeper into what's happening, to determine whether the company is facing a short-term or long-term blem

Image source: Getty Images (which is quite significant), in this volatile climate

On the other hand, Remember that the stock market as a whole, and the individual stocks within it, don't rise in a straight line

It's a jagged line, sometimes very much so, as volatility is simply a part of stock, in today's market environment

Nevertheless, Occasional pullbacks happen

Plenty of terrific stocks with amazing track records have fallen sharply or been lackluster performers for longed periods

Ly, those amazing stock performers have been worth holding on to for decades -- despite various big and small price drops

It can be hard to hold when a stock drops, but unless you have really lost faith in the company after reing its situation well, holding on is often the right thing to do

Those who have made gobs of money in such great companies have typically done so by hanging on for many years (which is quite significant)

Furthermore, Still, if you find yourself torn what to do with a stock that has fallen, remember that you can always sell some of your s

That can sometimes be an effective commise, in light of current trends.