Skip to main content

How to Know When to Sell Your Stocks






While quite a bit of time and research goes into selecting stocks, it is often hard to know when to pull out – especially for first time investors. The good news is that if you have chosen your stocks carefully, you won’t need to pull out for a very long time, such as when you are ready to retire. But there are specific instances when you will need to sell your stocks before you have reached your financial goals.





You may think that the time to sell is when the stock value is about to drop – and you may even be advised by your broker to do this. But this isn’t necessarily the right course of action.





Stocks go up and down all the time, depending on the economy…and of course the economy depends on the stock market as well. This is why it is so hard to determine whether you should sell your stock or not. Stocks go down, but they also tend to go back up.





You have to do more research, and you have to keep up with the stability of the companies that you invest in. Changes in corporations have a profound impact on the value of the stock. For instance, a new CEO can affect the value of stock. A plummet in the industry can affect a stock. Many things – all combined – affect the value of stock. But there are really only three good reasons to sell a stock.





The first reason is having reached your financial goals. Once you’ve reached retirement, you may wish to sell your stocks and put your money in safer financial vehicles, such as a savings account.





This is a common practice for those who have invested for the purpose of financing their retirement. The second reason to sell a stock is if there are major changes in the business you are investing in that cause, or will cause, the value of the stock to drop, with little or no possibility of the value rising again. Ideally, you would sell your stock in this situation before the value starts to drop.





If the value of the stock spikes, this is the third reason you may want to sell. If your stock is valued at $100 per share today, but drastically rises to $200 per share next week, it is a great time to sell – especially if the outlook is that the value will drop back down to $100 per share soon. You would sell when the stock was worth $200 per share.





As a beginner, you definitely want to consult with a broker or a financial advisor before buying or selling stocks. They will work with you to help you make the right decisions to reach your financial goals.


Labels:

Comments

Post a Comment

Popular posts from this blog

Best Web Site Optimization Forums

One of the things that I like best about the Internet is how easy it is to exchange information with other people. One of the most informative and interactive ways to do so is by becoming involved in various forums. In terms of search engine optimization, there are countless forums out there from which any person can glean tons of useful information. At the same time, you can also share your own experiences and tips. But if you are new to these things, which forum do you go to? About.com came up with a list of the best forums < http://websearch.about.com/od/seoblogsmessageboards/tp/seoforum.htm > out there which focus on web site optimization. Let's pay some of them a visit? /*Web Site Optimization Forum #1: High Rankings < http://www.highrankings.com/forum/ >* HighRankings.com is a forum put together by Jill Whalen, one of the shining stars in the Web site optimization world. I like this forum because of the variety of people that contribute, the discussions are inform...
Post a Comment
Read more

Best Web Site Optimization Forums (Part 2)

During hard economic times < http://www.bizcrunch.net/marketing/should-we-panic-from-the-lehman-debacle/ > – like the one we are in right now – many things are cut off from people's budgets. Personal expenses are drastically cut down. Business expenses are not exempt as well. Somehow, people find ways and means by which to lessen spending in order to weather the financial storm. Peripheral spending and nonessential expenses are usually the first to go. If you are thinking of cutting off your SEO expenses because of the credit crunch, you might want to think again. Ephipany Solutions explains the situation < http://www.epiphanysolutions.co.uk/payperclick/18791136/Credit-crunch-not-a-good-reason-to-cut-SEO-spending >: Firms should not cut back on search engine optimisation (SEO) spending because of the credit crunch, it has been argued. Daniel Robinson of Vizcom Design Limited suggested that SEO strategies can play an important part in the success of a bus...
Post a Comment
Read more

Why Should I Make a Budget?

You say you know where your money goes and you don’t need it all written down to keep up with it? I issue you this challenge. Keep track of every penny you spend for one month and I do mean every penny. You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years. That is how much you could have saved AND drawn interest on in just five years. That, my friend, is the very reason all of us need a budget. If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success. The little things really do count. Cutting what you spend on lunch from five dollars a day to three dollars a day on every work day in a five day work week saves $10 a week… $40 a month… $480 a year… $2400 in five years….plus interest. See what I mean… it really IS the little things and you still...
Post a Comment
Read more