2 Surprising Reasons to Sell Your Big Losers
Did you know an estimated 95% of day traders ultimately lose money? This leads many to believe the stock market is nothing but a sophisticated casino where the house always wins.
But there's an alternative way to participate in the stock market that has a much higher rate of success: long-term investing. The S&P 500, the benchmark often attributed to the overall stock market, has risen 10% per year on average (dividends reinvested). So, by simply staying invested in the market over the long run, you're very likely to make money.
This strategy presents a dilemma, however: If holding stocks longer increases your chances of making money, when should you sell?
Source Fool.com
