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Byline: DAVID SAITO-CHUNG
Why is selling right harder than buying correctly? Perhaps one word sums it up: emotions.
The rules on finding and buying a high-quality stock are cut and dried. Make sure the market is in an uptrend. Seek stocks with high Earnings Per Share and Relative Price Strength Ratings. Pick the No. 1 or No. 2 company in its field. Wait for the stock to fashion a good base. Buy quickly when the stock surges 10 cents past its pivot point on brisk volume.
If you can bake a cake by following a recipe, you can find a really sharp stock. But once you own one, feelings can cause you to make bad decisions.
Greed, hope or denial can make you hold a winning stock -- or a losing one -- too long.
Getting skittish may lead you to sell too soon as the stock goes through a normal correction, then hits new highs.
That's why you need to spend as much time learning, understanding and executing key sell rules. IBD has identified at least 25 time-tested ones to help you nail big profits on your best stocks.