| It has generally been observed that most
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| | It is important that you continuously
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| investors find it easy to make an
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| | update yourself with the performance of
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| investment decision but when it comes to
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| | the company whose shares you have bought.
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| selling they find themselves in the dark.
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| | In the financial world, too much of a
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| You may have purchased the shares after a
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| | good thing may spell trouble. When you
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| careful analysis. Yet if the situation
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| | find that the price of a share has gone
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| changes, warranting a review of your
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| | beyond its true value, immediately sense
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| decision, you should not hesitate to
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| | there is trouble. The best option is
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| reconsider your policy. As an intelligent
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| | always to sell when you find that the
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| investor, you should know when to sell
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| | share is overvalued, and buy it back when
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| your stock to book profits or to avoid
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| | the market forces bring about a
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| loss. Selling stock is an integral part
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| | correction. Remember selling an
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| of the investment process. Go through the
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| | overvalued one makes more business sense
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| following arguments and then decide
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| | than buying an overvalued share.
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| whether you wish to retain or sell it.
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| | Major changes in the company's management
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| The fear of making a loss
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| | or policy
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| The primary reason why people hold on to
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| | If there is a major overhaul in the
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| their stock is that they are afraid to
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| | policy or the management of the company
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| make losses. In a market, you make loss
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| | whose stocks you are holding, take it as
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| only when you sell it. Even though the
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| | a signal to sell your stock This is
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| prices may have fallen, you do not
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| | because you bought it based on its
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| actually make a loss till you actually
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| | fundamentals and its sound business
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| sell it. Before selling, research the
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| | model. If there is a change on the very
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| market reports to ensure whether the fall
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| | basis on which you make your decision,
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| is temporary, for example, it may be
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| | you should sell it. For example, if the
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| because of the cyclical nature of the
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| | company has a new CEO, the person may
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| company, or due to a one time factor. In
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| | take it off the direction it is presently
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| such scenario, chances are that the stock
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| | pursuing.
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| will pick up. On the contrary, if the
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| | All said, if the share deserves to be
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| performance has gone down due to more
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| | sold, you should not worry about
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| permanent reasons, you should sell it.
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| | recovering losses, if any. Sell the
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| This way even though you will make a
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| | share, recover the money and invest in
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| small loss you will be spared from making
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| | another company with a better track
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| a bigger one when the prices actually hit
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| | record and a promising future - for this
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| rock bottom.
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| | is what the game of investment is all
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| Is the stock overvalued?
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| | about.
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