Some investors lock in profits by selling their appreciated investments while holding onto underperforming stocks they hope will rebound. But good stocks can climb further, and poor stocks risk zeroing out completely. Below we discuss 10 tips for successful long-term investing that can help you prevent mistakes and hopefully generate some profits.
1. Ride a Winner
2. Sell a Loser
3. Don’t Sweat the Small Stuff
4. Don’t Chase a Hot Tip
5. Pick a Strategy and Stick With It
6. Don’t Overemphasize the P/E Ratio
7. Focus on the Future and Keep a Long-Term Perspective
8. Be Open-Minded
9. Resist the Lure of Penny Stocks
10. Be Aware of Taxes