The Key Selling Points
1. Rebalance your portfolio at fixed intervals (i.e., every months, every quarter, every year), selling stocks that no longer meet the fundamental criteria you used to buy them in the first place. Replace them with new stocks that do meet your criteria.
2. Sell stocks immediately if they are involved in accounting or earnings scandals, or if they become a major bankruptcy concern. In these cases, do not wait until your net rebancing date to sell.
3. For tax reasons, it's generally best to sell winning positions after you've held them for a year and losing positions before you've held them for a year. If a stock you've made money no longer meets your investment criteria and you've held it for close to a year, consider holding it until you pass that one-year mark to limit taxes.
4. Don't be discouraged when your system calls for you to lock in losses on a stock; not even the best investors in the world are right all the time.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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