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