This relates to Rule #1 Investing.
- Rule #1, don’t lose money.
- Rule #2, don’t forget Rule #1.
Remember, I only sell for a profit. I continue to train a good habit of only selling when share prices are above my cost basis (my average buy price).
This investing tip may seem like a repeat of previous tips. The reason I have to mention it again is because a lot of new investors are tempted to sell their stocks for a loss, thinking the stock will go to $0. That is highly unlikely. The reason is, that stocks are businesses that are solving problems by selling products and services. Most businesses are not going to be in business one day and then decide to go out of business the next day. If they did that, they would upset a lot of customers.
Always remember Rule #1 Investing.