Don’t panic over short-term changes – Stocks fluctuate all the time, and they can be affected by many factors in the short-term, including management changes in the company and seasonal demands for their product or service. Don’t sweat a stock that dips slightly or get too high on a stock that bumps up for a day or two.
Sell losers – When a stock declines over the course of several months, it is likely best to sell as soon as possible. Unless there are major changes to the company’s stock on the horizon – such as a new product release – selling before the price sinks any lower may be the best option.
Stick to a strategy – There are plenty of different methods out there for picking stocks. The best bet is to pick a strategy, or combine several strategies into a personalized one, and stick to that for the long term. Changing stock-trading methodology constantly can lead to conflicting decisions and potential losses in both the short-term and long view.