When to Sell Stocks?
Tell Me When to Buy a Stock I'll tell you when to sell the stock. If you know the correct answer to these questions, you can assume that you have mastered the stock market. These unanswered questions remain unanswered, so the market continues its fascinating volatility, which discourages investors.
Broadly speaking, investors sell stocks for two reasons: market reasons and personal reasons. Personal reason:
When you buy this stock, you like its growing hope. Expectations are now broken. You can not bear its behavior, it's fluctuating. Profit or no profit, you now want is peace of mind! It is possible when you get rid of the share.
For some unexpected commitments, you need emergency cash. Anything you've been thinking about dealing with this particular share, now you have a legitimate reason. But think again. Why do not you have enough liquidity as an emergency reserve? Clearing the stock to pay the bill is not the right choice. The share you sell, and soon its uptrend begins, you regret your action. Investors should not invest more than 25% of the shares of liquidity.
Investors are beginning to become enlightened. Profits are not the only criteria for investment. Man now realizes that he has developed too much of nature, and if the limits are not now set, the human presence is dangerous. One has begun to review the company's annual report with a new perspective. What are the company's ethical, environmental and ethical standards? Do they conflict with your religious and moral beliefs? A person bid farewell to the shares of these companies, and by adding the right combination to change portfolio.
In reviewing this share in your portfolio, do you think you have a better chance in other places. The key point to consider is how much to pay for transaction costs and net income after tax liability is reached? Before you make your final decision, this question deserves your serious reconsideration.
When you are satisfied with your intended goals, such as retirement or funding for children's education, the time to clear your stock has arrived. Consult a tax advisor and follow the correct procedures to keep your tax liability to a minimum.
The reason for the market:
The sale of shares is a difficult decision. The flow of confusion about the pros and cons of the proposed action disturbs you. When the stock fell, the spirit of investors also declined, it is believed that selling it. When prices are rising, people rarely want to sell stocks. But some savvy investors know that the best time to sell stocks is when their prices soar. Even if your strategy is to buy and hold, you need to understand that it is best to sell stock sometimes! Some reasons are:
When you regularly review a portfolio, you will notice stagnation of a particular stock. For further exams, you see that the company's fundamentals have changed. It has stopped growing, the management is facing problems, some directors quit, you are not sure the advantages of the new director into the market report the product is not good. Waiting and watching the policy is futile, because for this share, better disposes of it. Take a closer look at the cash flow statement, which will tell you the value of the stock when you analyze it against these three questions.
"Operating cash flow growth below net income?
Inventory rises faster than sales?
Does receivables grow faster than sales?
is personal. Individual psychological methods in most cases are realistic scores on market conditions.