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Lesson 14. How to Check Your Investments > Checking Your Stock's Performance - Pg. 81

How to Check Your Investments Tip 81 Put another way, reevaluating your portfolio is about reaffirming that your original decision is still the correct one, not about trying to pick that decision apart. 2. By trading stocks as opposed to letting them sit, investors are not allowing their stock to per- form to its fullest potential. Remember that the greatest ally you have in the stock market is time. The stock market is geared toward investors who buy stock and keep it, rather than those who trade it frequently. Unlike the Las Vegas roulette wheel, capital gains and stock dividends tend to be highest among those that "let it ride"--even, or especially, when the stock has taken a downturn. The time when your stock has suffered a loss is not the time to sell it (unless of course, you firmly believe it will continue to go down until the company goes out of business). By selling your stock then, you will suffer an investment loss. However, if you let your investment sit, odds are heavily in favor of the stock, again with time, recovering that loss and even making a profit. Don't be faint-hearted ... let it ride. Remember, successful investing is not so much about buying and selling on a regular basis as it is about making educated investment decisions in the first place so that reaffirming your decisions later is not so difficult to do. Checking Your Stock's Performance Once you have actually invested in a particular stock, you are no longer dealing with abstract ideas and numbers. Instead, you are dealing with cold hard cash. And, since this cash is yours, it's defi- nitely important. Checking your stock's performance is every bit as essential as reevaluating your portfolio. In fact, the tangible information used to reevaluate your portfolio is gained by checking your stock's performance.