Investors: Don’t Fret About What That Sold Stock Is Doing Today

A few minutes ago, I caught myself falling into one of the thousand mental traps that can ensnare investors.

This one pertains to the nasty habit of selling a stock, watching it rise afterwards, and then thinking about others who simply bought-and-held it, which is the conventional investment wisdom any rookie financial planner will suggest.

“Gee, if I simply held on, I would have made thousands more,” you might chide yourself.

Of course, that statement is true and false and none of the above.

It’s true if you sold it today, but if your buy-and-hold philosophy is in place, you’ll hang on.

It’s a false statement because if you hang on long enough, it will probably take a dip.

Sell at that time, and you’ll wipe out your gains and rue the day you didn’t pull the trigger, earlier.

And it’s none of the above because you’re simply in no position NOW to make the judgment.

In truth, you didn’t hold the stock. It’s history. So, you’re confronted with more choices today, some of them good ones, including buying it back at a higher price, if you think it will rise even more.

And if your money has been in the money market since you did sell it, you’ve been earning perhaps a fairly good return, given current interest rates.

The habit of second-guessing your investment decisions is incredibly wasteful because you can’t look forward and backwards at the same time.

Article Source: http://www.content.onlypunjab.com

Best-selling author of 12 books and more than 900 articles, Dr. Gary S. Goodman is considered "The Gold Standard"--the foremost expert in sales development, customer service, and telephone effectiveness. Top-rated as a speaker, seminar leader, and consultant, his clients extend across the globe and the organizational spectrum, from the Fortune 1000 to small businesses. He can be reached at: gary@customersatisfaction.com.

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