Wednesday, February 14, 2007

Sell high?

What do you do when your stock is up 100% or more? Crazy question, I know. But in this situation, people can make costly mistakes in terms of opportunity. Many prefer to sell at least half their position in order to "lock in some gains," and others will sell it all, thinking there can't be much upside left in the stock after such a big run-up.

But oftentimes that thinking is wrong.

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