Sell When You Can Not When You Have To

Posted on May 8, 2009

As we all are presumably enjoying this continued massive stock market rally, I think it’s wise to remember the classic trading rule:
Sell When You Can Not When You Have To.

I believe it’s impossible to time a bottom or a top in the Market, so the intelligible thing to do is buy early when valuations are low and sell out early when valuations are more than reasonable (which I think is the case now for many micro cap stocks that have recently tripled). You don’t want to be around when the music stops, even if it means giving up another 10% upside.

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