Few Stock Traders Use This Simple Stock Selling Strategy

Few stock traders use this simple stock selling strategy or what you call a rule. What is this simple stock selling rule?  “The rule is very simple,” Cramer said. “If you own a stock and it refuses to go higher when the market rallies over several days, you should probably sell it.” As a stock trader, Jim Cramer the CNBC Mad Money host has one big stock regret. When he was right in his stock research, he let skepticism overcome him. Too much skepticism can be more harmful than good.

There were times when Cramer identified companies with solid balance sheets, good future potential and excellent management teams, yet he let skepticism prevail instead of trusting the research and his instincts.

Now this draconian rule will always help you drive your profits higher. “What’s this rule? Simple: never buy any stock above your cost basis, the average price you’ve paid to build up your current position, unless something truly transformative has happened at the company.”

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