How To Make Even More Money With Your Favorite Stock!

Do you have a stock a favorite company that you are partial to that you dont want

to get rid of regardless of what all the research or tea leaves might be indicating? We call this stock a legacy holding.

If you have this kind of relationship with a favorite stock or two, then read on for some advice on how to make money or at least limit your losses!

Our general rule is that if youve got a small sum of money and you want to play, thats fine as long as youll be okay if you lose most or all of your investment.

Whenever you have money in a stock, its important to look at how much money is involved. If its not life changing money, even if the stock doubles, triples or quadruples in value, and it is causing you unnecessary worry or anxiety, maybe the better approach with that stock would be to get it out of your life. Its always good to eliminate undue stress and worry when something is not bringing you joy and satisfaction.

If youve got a favorite legacy stock thats made you a lot of money in the past, you need to remember that this is no guarantee that its going to do it again in the future.

The best way to make money with your favorite stock is to not get emotionally tied to it. Know and understand that your favorite stock is going to rotate in and out of favor with the market. This doesnt mean the company is going under or not going to continue to be profitable. But if you reach the point where youre losing money or not doing as well as you could be, it could be time to sell.

A supply and demand investment system (like ours) can tell you if there appears to be enough demand in the marketplace for your stock thats going to lead to above market returns. If not, maybe a better approach is to sell that legacy stock.

The most common objection we get to this advice is, I made all this money, Im going to get killed on taxes I really dont want to take the tax hit. However, theres a time to be invested in a stock and then theres clearly a time when it makes sense to step to the sidelines. If you stick with some stocks long enough, youre going to watch the stock price go down to the point where youve either lost money or you feel a significant loss on profit.

Its all about the market forces of supply and demand. It doesnt mean your favorite stock is bad or mismanaged. But based on a supply and demand system, there may be better opportunities elsewhere. And shouldnt that be where you put your money?

Copyright (c) 2010 Brian Fricke

by: Brian Fricke

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