This is the question that we all grapple with. Even if you're typically a buy and hold investor, there comes a time when it's in your best interest to make a move. There is no single rule when to sell, but examining a few important points can help you determine when it's the right time to tell your stock "Goodbye sucker!"
Company is flat lining. Take a look at the stock's issuing company. If the company doesn't have a competitive advantage and has lost money for consecutive quarters, the timing might be right to get out.
Max risk tolerance. When a stock has dipped so low that it hits your risk tolerance threshold, get out while you still have time to make up for any losses incurred with your portfolio.
Your stock is like a weed. When your stock is taking over your investment portfolio, it may be good time to sell some of that stock and use the money to diversify your portfolio. You don't want to put all your eggs in one basket.
You've met another stock. And it meets your risk tolerance and has more return potential. Then it makes sense to sell. But first, consider any taxes and transaction costs before making your decision.
Whatever you decide to do, make sure you take some time to examine the whole picture. Hope this helps.
Here are some books to might of assistance.
Trading For Dummies
Stock Investing For Dummies
The Complete Guide to Investing in Short Term Trading: How to Earn High Rates of Returns Safely
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