When Should I Sell My Stock Or Share?
The best time to sell any investment is when it has achieved the desired return.
This assumes that you have invested objectively and understand the downside and are not in a position of having to sell.
History tells us that the likelihood of well managed company stocks and shares will increase in value over time.
There are exceptions of course, but the selling decision is very much driven by a wise buying strategy.
Stock and share prices are always volatile because price is largely determined by the supply and demand for them and the economy.
If both supply and demand are well aligned the price volatility will usually be low.
Hence simply because a sock or share price goes down as part of the volatility cycle, the wise investor knows that it will go up at some stage.
If however you have achieved your financial objectives with the stock or share, then selling at a reduced price may be ok.
If the whole economy is in decline you need to ask the question as to where you will reinvest your funds and answer the question: Will you get a better return? Research the trends in the economy and the company's outlook and make an informed decision.
If the price has dropped because the company is not making money and is not likely to make money then selling may be good as the stock or share price will probably keep going down if the fundamentals are not right.
In summary, however there are usually three sound investment reasons to sell your stocks and shares.
(1) If the sock or share price has spiked.
This occurs when the price has moved with the economic trends for a reasonable time then suddenly it double in value and then starts to dip.
You have probably achieved your financial goals and it is a good time to sell.
(2) If the company is about to drastically change its plans and the market is unsure and you are unsure of the returns.
They might be good and they might be bad.
Get out before the price drops.
(3) If your financial objectives have been met, simply sell.
You may have retired or you need the money for something else.
It is always prudent to consult an expert or two as well as doing your own homework.
This is much easier to carry out on the internet.
Happy investing and research, research, research.
This assumes that you have invested objectively and understand the downside and are not in a position of having to sell.
History tells us that the likelihood of well managed company stocks and shares will increase in value over time.
There are exceptions of course, but the selling decision is very much driven by a wise buying strategy.
Stock and share prices are always volatile because price is largely determined by the supply and demand for them and the economy.
If both supply and demand are well aligned the price volatility will usually be low.
Hence simply because a sock or share price goes down as part of the volatility cycle, the wise investor knows that it will go up at some stage.
If however you have achieved your financial objectives with the stock or share, then selling at a reduced price may be ok.
If the whole economy is in decline you need to ask the question as to where you will reinvest your funds and answer the question: Will you get a better return? Research the trends in the economy and the company's outlook and make an informed decision.
If the price has dropped because the company is not making money and is not likely to make money then selling may be good as the stock or share price will probably keep going down if the fundamentals are not right.
In summary, however there are usually three sound investment reasons to sell your stocks and shares.
(1) If the sock or share price has spiked.
This occurs when the price has moved with the economic trends for a reasonable time then suddenly it double in value and then starts to dip.
You have probably achieved your financial goals and it is a good time to sell.
(2) If the company is about to drastically change its plans and the market is unsure and you are unsure of the returns.
They might be good and they might be bad.
Get out before the price drops.
(3) If your financial objectives have been met, simply sell.
You may have retired or you need the money for something else.
It is always prudent to consult an expert or two as well as doing your own homework.
This is much easier to carry out on the internet.
Happy investing and research, research, research.
