Smart-sounding reason to sell Stocks

There's ALWAYS a smart-sounding reason to sell.

Before you do, keep these 10 things in mind:

1: Reversion to Mean: Markets are mean reverting, so selecting your investments looking just at the recent past is dangerous.

2: Time is your friend, impulse is your enemy: Time is your greatest ally in the compounding journey. Take advantage of it. Avoid impulsive actions like timing the market, buying what's hot, selling what's plunging, etc.

3: Buy right and hold tight: If you have done your work well, and the business continues to do well, hold on to it tight. Think like an owner.

4: Have realistic expectations: We get into trouble when we base our expectations on speculative return. Be realistic in your expectations.

5: Buy the haystack: A broad-based, low-cost index fund or ETF is a great way to invest.

6: Minimize the croupier's take: Always consider the costs of an investment. They reduce your rate at which your money would compound.

7: There's no escaping risk: What you must decide is what kind of risk you wish to take.

8: Beware of fighting the last war: You should not expect the recent past to continue into the future.

9: Long-term investment success is based on simplicity.

10: Stay the course: Most investors fall prey to the emotions of envy, greed, fear, and abandon their process. The ones who do well in the long run are those who stay the course.

Or, as Peter Lynch famously said:

"Everyone has the brains to make money in stocks. Not everyone has the stomach."