Saturday, October 12, 2013

When should you sell your stocks



Never purchase high
For the long run it is better not to purchase shares at a high price.Because at this time prices are usually at their peak and probably won't go any higher.

25% Rule
On a average never hold shares more than 25% because most shares will only increase 20-25%.Unless it's daily increase is over 10% or more.If it is 10% or more daily increase hold it until it drops until 5% or less.Then don't be greedy sell it while your still up.

Company Earnings
When your companies earning is starting to dip after it peaks you know this is around the time you should have sold your shares.Hold it any longer and you may lose a lot as it will be hard to sell shares that are falling unless your willing to sell them even cheaper.

Better investments are Available
Never just hold shares hoping that you can still make a profit.If you can see another share that has potential earnings then by all means go for it.It will be worth not holding your shares.There are better opportunities out there.

When you know it's a loss
For example a company goes bankrupt sell it there is no point in holding on it.



1 comment:

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