Six Selling Disciplines

1. Opportunity cost sell discipline
2. Deteriorating fundamentals sell discipline
3. Valuation-level sell discipline
4. Down-from-cost sell discipline
5. Up-from-cost sell discipline
6. Target price sell discipline

**For this segment, always using After-Tax return**

Opportunity cost sell discipline:

-Exchanging securities while also considering transaction costs and tax consequences
Deteriorating fundamentals sell discipline:

-Sell a firm whose business will worsen in the future

Valuation-level sell discipline:

-Sell a stock if its P/E ratio rises to the ratio's historical mean

Down-from-cost sell discipline:

-Sell a stock if it's price declines more than x% from the purchase price

Up-from-cost sell discipline:

-Sell a stock if its price increased by X% from the purchase price

Target price sell discipline:

-Sell the stock when it reaches its predetermined intrinsic value