At least 10 times the calories are spent analyzing the buy decision in a stock versus the sell decision. One should have as much of a framework and discipline for selling stocks as for buying them. there are 5 ways to sell securities:
1. As soon as you realize you've made a mistake.
2. Getting tomorrow's prices today. At times, stocks hit valuations best left for others.
3. Rebalancing--as a stock gets outsized in a portfolio. This helps with the initial sale decision.
4. To make room for a new idea.
5. When a company's outlook is changing.