| While quite a bit of time and research goes into | | | | combined - affect the value of stock. But there are |
| selecting stocks, it is often hard to know when to | | | | really only three good reasons to sell a stock. |
| pull out - especially for first time investors. The good | | | | The first reason is having reached your financial goals. |
| news is that if you have chosen your stocks | | | | Once you've reached retirement, you may wish to |
| carefully, you won't need to pull out for a very long | | | | sell your stocks and put your money in safer financial |
| time, such as when you are ready to retire. But | | | | vehicles, such as a savings account. |
| there are specific instances when you will need to sell | | | | This is a common practice for those who have |
| your stocks before you have reached your financial | | | | invested for the purpose of financing their retirement. |
| goals. | | | | The second reason to sell a stock is if there are |
| You may think that the time to sell is when the | | | | major changes in the business you are investing in |
| stock value is about to drop - and you may even be | | | | that cause, or will cause, the value of the stock to |
| advised by your broker to do this. But this isn't | | | | drop, with little or no possibility of the value rising |
| necessarily the right course of action. | | | | again. Ideally, you would sell your stock in this |
| Stocks go up and down all the time, depending on | | | | situation before the value starts to drop. |
| the economy…and of course the economy | | | | If the value of the stock spikes, this is the third |
| depends on the stock market as well. This is why it | | | | reason you may want to sell. If your stock is valued |
| is so hard to determine whether you should sell your | | | | at $100 per share today, but drastically rises to $200 |
| stock or not. Stocks go down, but they also tend to | | | | per share next week, it is a great time to sell - |
| go back up. | | | | especially if the outlook is that the value will drop |
| You have to do more research, and you have to | | | | back down to $100 per share soon. You would sell |
| keep up with the stability of the companies that you | | | | when the stock was worth $200 per share. |
| invest in. Changes in corporations have a profound | | | | As a beginner, you definitely want to consult with a |
| impact on the value of the stock. For instance, a | | | | broker or a financial advisor before buying or selling |
| new CEO can affect the value of stock. A plummet | | | | stocks. They will work with you to help you make |
| in the industry can affect a stock. Many things - all | | | | the right decisions to reach your financial goals. |