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Article #140: How to Know When to Sell Your Stocks

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






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