Whenever you invest your money, one of the highest priority or most important things to know is when do you exit? When do you sell some or all of your position?

If you are similar to the the vast majority, who invest to make gains, your answer to the question was something like when I make money. But when do you sell part or all of your position? The answer will be the difference between making money and not making money in the world of investing.

If you have no strategy, then you need to have built in feature(s) to ensure a strategy automatically kicks in. With dividend stocks and monthly income funds – the strategy is simple, if a company does not pay or cuts their payments, you automatically know without even thinking, about the long term perspectives of the company, it is time to sell and move on. There will be plenty of signs before the announcement of a dividend cut for it is not good company thinking to raise the dividend and then cut it the next year. But at the minimum, you know what to do and you have a exit strategy and that action will save you money.

There are a great many stories about stocks that rose to great heights in prices, then came down to much lower prices, people owned them on the way up and down, because they had no exit strategy or when to sell. It is easy to get attached to a company story, you need an exit strategy or when do you sell part or all of your holdings? Just remember taking some profits is good.

There are always more questions than answers, till the next time – to raising questions.