hobbit asked in Business & FinanceInvesting · 1 decade ago

Does anyone have a good rule of thumb to sell a stock?

You hear lots of ideas about buying stocks or trusts. I want to know how to figure out when to dump a loser that still is paying a steady stream of dividends or cash out on a winner that is a non-dividend bearing stock

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  • 1 decade ago
    Favorite Answer

    There are several schools of thought:

    1] Before getting into any trade, the trader/investor should plan the trade - "from cradle to grave".

    This includes

    A] the entry: Among other criteria: checking the news; finding out when earnings are; finding out about stock splits; what the market, sector, industry and the stock's trends are. THEN when the rules are acceptable. planning an entry price.

    B] the target or goal.

    C] the price when it hurts too much to stay in any longer.

    D] An acceptable loss % OR dollar amount

    E] Regardless of what the stock is doing - going up, going down or moving sideays - a specific time period to get out and go on to other trading opportunities.

    As one of my mentors told me, "Trees don't grow to Heaven - neither do stocks or any other type of investment.

    2] "Shoot from the hip" and rely on "stock tips" from friends, relatives and strangers.

    3] Asking Qs of those more knowledgeable - preferably your broker - about the market and that particular stock.

    VTY,

    Ron Berue

    Yes, that is my real last name!

    Source(s): Thanks for asking your Q! I enjoyed answering it! My wonderful family! My wonderful coaches and mentors! TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of! Trading stocks and options more than 2 years. "THE University of Hard Knocks"
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  • 1 decade ago

    Read everything you can find concerning the stocks you want to buy or sell. Hopefully the stocks are companies whose products you use regularly.... Oil companies will not go out of business soon so those are generally keepers. If you are losing sleep over a stock one way or the other....get rid of it. If you need the money you are investing or thinking about investing..... don't invest in the stock market. You have to have the mind set that you can afford to lose the money that you have invested. If you can't.....don't.

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  • Anonymous
    5 years ago

    Hi there,

    I've been trading the market for just a few months. My cousin actually told me about this website ( http://pennystocks.toptips.org ) and I signed up immediately after. This is my honest review about their method. I'm not someone who has a lot of time to be researching for ideas because I work many hours. they made it incredibly easy for me to make money in the market. Their reports are easy to read and follow. I've tracked most of the stock ideas that I've received in my e-mail from them and MANY have seen some nice gains after their announcements. I've made a nice profit (55% return on my investment on one, and 112% on the other!) on a couple of suggestions he's given and plan to start trading his ideas a lot more.

    For more info: http://pennystocks.toptips.org

    Hope it helps.

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  • abina
    Lv 4
    3 years ago

    purchase and carry. till there's a valid enterprise reason for merchandising the inventory -- including changing enterprise climate or undesirable overall performance of the enterprise ordinarily -- you will desire to hold the inventory indefinitely. On acceptable of that, while different holders of the inventory go on a income-taking merchandising spree as sometimes occurs it rather is an surprising time to %. up additonal shares at a relative good purchase cost. Your portfolio's entire cost would take a non everlasting sag yet till there's a valid reason for dumping the inventory that is cost would desire to right now rebound and proceed to take exhilaration in. that is this equipment that made Warren Buffett the 2nd maximum wealthy guy contained in the international. people who attempt to "time" the marketplace WILL LOSE way greater beneficial than they income over the years. don't be suckered in to that failed technique of investment.

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  • Anonymous
    5 years ago

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  • 1 decade ago

    I always buy stocks when they break support. That is when they break through a level that they normally bounce off of. It's a good indicator that they are heading down.

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  • Anonymous
    1 decade ago

    Here is some company that claims that they have a computer that tracks stocks that double the next day. Its a super computer network that uses micro technology and live protocol network tracking. iv used their service myself and i am shocked to say that it works. IT WORKS!!!

    Here you go!

    http://doublingstocks.com/?hop=frigithead

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