| The theory behind selling stocks is
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| | the English 'Sell in May and go away;
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| pretty simple; the hard part, as always,
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| | don't buy back 'til St Leger day'. The St
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| is putting it into practice.
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| | Leger Stakes is the last English
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| The question of when to sell a stock is
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| | 'classic' horse race of the flat season
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| one of the most talked about areas of
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| | and is held in early September. The
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| investing. It's also one of the most
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| | theory goes that you should skip the
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| vexing. And it's no accident that these
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| | summer months in the stockmarket (at
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| two things appear together. There are
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| | least in London) because prices will just
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| scores of little stockmarket tips thrown
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| | drift lower as the 'City' professionals
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| around on when to sell, but if you
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| | bunk off to enjoy Wimbledon, Ascot,
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| followed most, or even a few, of them,
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| | Henley and all the rest of it. But if
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| you'd soon get yourself tied up in knots.
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| | everyone did sell in May, then you'd need
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| 'You'll never go broke taking a profit',
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| | to be selling in April, and perhaps March
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| it is often said, and at first it seems
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| | and so on. And ditto for buying back in
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| like sensible advice. But you won't get
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| | September (or August ... or July ... ).
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| far in the stockmarket if you sell all
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| | Means to an end
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| your stocks the moment they pass your buy
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| | The truth is that you should make your
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| price (and you eventually will end up
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| | sell decisions according to basic
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| broke from all the trading costs).
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| | investing principles. The trick is to
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| Another tip is to 'Buy the rumour; sell
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| | remember that profits in the stockmarket
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| the fact', meaning that you should buy
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| | come from holding undervalued investments
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| stocks when good news is rumoured and
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| | and that buying and selling are simply
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| sell when it actually appears. The idea
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| | means to that end. Of course, as we
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| is that people tend to overreact to
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| | discuss in this issue's cover story, you
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| rumours, pushing a stock beyond what's
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| | also need to combine the right blend of
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| actually justified by the news. This may
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| | undervalued investments so you're not too
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| be true, but it is of course fuelled by
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| | exposed to any particular economic
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| people 'buying the rumour'.
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| | shocks.
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| Perhaps the most curious advice of all is
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