| Selling stocks is tougher than rocket science. You | | | | due to the bigmouth of a politician. |
| have to learn precise mathematical formula to | | | | Many day traders love the volatility in an uncertain |
| become a rocket scientist. However, there is no | | | | market. They can make a large profit. |
| formula for selling stocks. | | | | There are essentially three reasons to sell stocks. |
| Many investors spend more time in doing research | | | | 1. You need money. |
| for buying stocks than for selling stocks. Some | | | | You need money to buy a car. You need money to |
| investors become too emotionally attached. They | | | | pay for medical treatment. You can sell winning |
| refuse to sell stocks. Many of them regret for years. | | | | stocks to lock in profits and to cash out from the |
| Most people, including the rich investors, do not really | | | | stock market. |
| know when to sell stocks. That is why many people | | | | 2. There is a big change in the industry or company. |
| sustain paper loss when the market dived during the | | | | For example, a natural disaster destroys the factory |
| sub-prime crisis. Many fund managers were caught | | | | of a listed company, you must sell stocks |
| with massive paper loss too. | | | | immediately. |
| If they do not know when to sell stocks, neither are | | | | 3. The price shoots up due to speculation. |
| you able to time the market repeatedly to gain | | | | When the share price of the company is |
| profits. | | | | unsustainable, you can sell stocks. You can buy again |
| The best course of action is to hold the stock in a | | | | when the share price returns to a reasonable range. |
| market crash. Let us assume that you bought the | | | | The key is to pay attention to the price movement |
| stock at $200, and the price is now $40. Is this a | | | | in the stock market. If you miss out the news about |
| good time to sell? Obviously not, unless there is a | | | | the disaster, you will sustain the paper loss for a long |
| real risk of the business failure. | | | | time. |
| If the stock price looks set to fall, you can consider | | | | You should consult your broker before selling stocks. |
| the contributing factor. Sometimes, the stock market | | | | It is not the job of your broker to make decision for |
| suffers a free fall for a day, and stages a spectacular | | | | you. However, he can provide information to assist |
| rally the next day. Sometimes, the stock market falls | | | | you in making a wise decision. |