| Most investors put substantial time and | | | | stock. A prospective take-over bid can affect |
| research into selecting the best stocks in | | | | the price of the stock. Many things, all |
| which to place their money. However, it is | | | | combined, affect the value of stock. But |
| not unusual to find those same investors | | | | there are really only three good reasons to |
| haven't spent a similar amount of time in | | | | sell a stock. |
| determining when to sell or pull out. This | | | | |
| can be especially true of the first time | | | | The 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 the | | | | stocks and put your money in safer financial |
| stocks to purchase carefully and wisely, you | | | | vehicles, such as a savings account. This is |
| hopefully won't need to pull out for a very | | | | a common practice for those who have invested |
| long time. Maybe even as far in the future as | | | | for the purpose of financing their |
| when you are ready to retire. | | | | retirement. |
| | | | |
| But there will inevitably be specific | | | | The second reason to sell a stock is if there |
| instances when you will need to consider | | | | are major changes in the business you are |
| selling your stocks before you have reached | | | | investing 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 when | | | | Ideally, you would sell your stock in this |
| the stock value is about to drop, and it | | | | situation before the value starts to drop. |
| could be your broker has advised you to do | | | | |
| this. However, this isn't necessarily the | | | | If 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, depending | | | | rises suddenly to $200 per share next week, |
| on the economy and other factors. And the | | | | it could be a great time to sell. This would |
| economy itself has a relationship with the | | | | be especially true, if you feel the outlook |
| perceived value of the stock market. This is | | | | is that the value will drop back down. In |
| why it can be hard to determine whether you | | | | this instance, hopefully you're able to sell |
| should sell your stock or not. Stocks go | | | | when 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, and | | | | definitely consult with your broker or a |
| understand the stability and performance of | | | | financial advisor before buying or selling |
| the companies in which you invest. Certain | | | | stocks. Making the right decisions at both |
| changes in corporations have a profound | | | | ends of your transaction can be the |
| impact on the value of the stock. For | | | | difference between profit and loss in your |
| instance, a new CEO can affect the value of | | | | investments. |
| stock. A plummet in the industry can affect a | | | | |