By Carl Richards
The Motley Fool
How do you know when it's time to sell?
Psychology plays a huge role in making the decision to sell. History is littered with examples of greed or other bad behaviors that get in the way of what, in hindsight, turned out to be a great opportunity to take some profit off the table.
During the last few years, we've seen several stocks reach all-time highs, and I'd hear people wondering about whether it's time to sell only to balk because they didn't want to deal with the tax burden.
This approach to selling is a little bit like letting the tax tail wag the investment dog. Sure, considering potential taxes should be a part of the investment decision, but it shouldn't be the deciding factor.
So if you find yourself in the enviable position of having chosen a few winning individual stocks, and you're willing to look beyond the taxes, how do you make the decision?