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Not A Stock Wizard? Avoid These Investing Mistakes, Part 3

Read about the common mistakes people make when dealing with stocks.

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Going for broke. Buy low, sell high. How difficult canthat be? For many of us, it's almost impossible. It seems thatlots of folks can tell you when to buy a stock (yourbrother-in-law, your golf buddy, even your broker), but few cantell you when to sell. See if this sounds familiar: You buy sharesin a stock you like and the price begins to rise. It continues torise until you have a profit of more than 20 percent. You'renow faced with a classic dilemma: Do you take the profit and run?Unfortunately, no one has a crystal ball. You may have apharmaceutical company with the cure for cancer on your hands, butthere's no way to know for sure.

One possible strategy? When buying, set a target price at whichyou'd be happy to sell. When your shares get there, re-evaluateyour decision to see if you'd buy the stock anew at the higherprice. If not, sell, sell, sell, and don't look back . . .unless the price falls to a point where you want to pick it upagain.

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