Enter the complicated world of brokery


How to Know When to Sell Your Stocks

Most investors put substantial time andstock. A prospective take-over bid can affect
research into selecting the best stocks inthe price of the stock. Many things, all
which to place their money. However, it iscombined, affect the value of stock. But
not unusual to find those same investorsthere are really only three good reasons to
haven't spent a similar amount of time insell  a  stock.
determining when to sell or pull out. This
can be especially true of the first timeThe first reason is having reached your
investor.financial goals. For example, once you've
reached retirement, you may wish to sell your
The good news is that if you have chosen thestocks and put your money in safer financial
stocks to purchase carefully and wisely, youvehicles, such as a savings account. This is
hopefully won't need to pull out for a verya common practice for those who have invested
long time. Maybe even as far in the future asfor the purpose of financing their
when  you  are  ready  to  retire.retirement.
But there will inevitably be specificThe second reason to sell a stock is if there
instances when you will need to considerare major changes in the business you are
selling your stocks before you have reachedinvesting in that cause, or will cause, the
your  financial  goals.value of the stock to drop with little or no
possibility of the value rising again.
You may think that the time to sell is whenIdeally, you would sell your stock in this
the stock value is about to drop, and itsituation  before  the  value starts to drop.
could be your broker has advised you to do
this. However, this isn't necessarily theIf the value of the stock spikes, this is the
right  course  of  action.third reason you may want to sell. If your
stock is valued at $100 per share today, but
Stocks go up and down all the time, dependingrises suddenly to $200 per share next week,
on the economy and other factors. And theit could be a great time to sell. This would
economy itself has a relationship with thebe especially true, if you feel the outlook
perceived value of the stock market. This isis that the value will drop back down. In
why it can be hard to determine whether youthis instance, hopefully you're able to sell
should sell your stock or not. Stocks gowhen  the  stock  was  worth  $200 per share.
down,  but  they  also  tend  to  go back up.
If you are new to trading, you should
The best advice is to do more research, anddefinitely consult with your broker or a
understand the stability and performance offinancial advisor before buying or selling
the companies in which you invest. Certainstocks. Making the right decisions at both
changes in corporations have a profoundends of your transaction can be the
impact on the value of the stock. Fordifference between profit and loss in your
instance, a new CEO can affect the value ofinvestments.
stock. A plummet in the industry can affect a



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