investing guide

When Greed Won't Let You Sell Winning Stocks

stock market greed

Greed has been the downfall of many people in this world.

Refusing to sell your winning stocks because of greed is a sure fire way to ruin your portfolio. There is an old saying on Wall Street that says "pigs get slaughtered." The world is filled with greedy people, and the executives from Enron are a perfect example of how greed can completely take over common sense.

Investors need to realize when they have made a successful trade, and when it is time to take some money off of the table. Too many investors will hold onto stocks to long; because they are afraid of selling their stock to early, and missing out on even more profits. GREEDY GREEDY GREEDY

It has been said that when your stock rises more than 30 percent, that it is time to at least take some of your position off the table to lock in your profits.

A great tool to ensure you lock in profits on the way up is the use of trailing stops. Using trailing stops will once again take your emotions out of the picture.