When to sell a holding

From lockdown winners to contrarian fund picks, investment discussions often focus on what and when you should buy. But selling a holding at the right moment can be equally important to your ultimate returns, whether it involves taking profits on something that looks overpriced or getting out before an investment's price starts falling. There are numerous examples of how stubbornly holding on to a compromised investment can have dire results including the recent Wirecard scandal and demise of LF Woodford Equity Income fund.

A focus on buying means that investors trying to identify sell signs tend to find scarce guidance on the subject. But the following general principles could help you to decide when to call it quits.