Selling Stocks
Selling a stock at appropriate time requires practice. There factors effecting markets include the general economical conditions of the particular country, demand for the product sold by the company in which the investment is made, results of the company, their projections for future performance and so on.
A company may have done well in the past but there is no certainty that this will continue for ever. If the targets have not been achieved by the company for a certain period, the stock value might decrease. So also if their projections are not attractive, demand for that particular stock could be effected.
Bearing in mind some of these factors, one can fix a target where he is ready to sell in case of stocks increasing in value over a period of time. After a decent percentage of profit has been achieved, it would be wise to sell a portion of shares held in that company instead of holding the entire stock. Some other stocks in other companies may be at a loss which can be made up by this method. If the loss making stocks are too bad, further loss can be prevented by selling off the existing stocks.
If the company is known for its stability, by virtue of its financial position, one need not worry even if the stock dips below a certain limit, as it has the potential to rise in future. This exercise can be developed over a period of time with practice. In any case selling a portion of stocks that are profit making is advisable, some stocks can be still held for the future.
One should not become over greedy to make excessive profits as it might suddenly drop and the investor might lose more than expected. To make up the loss, it could take a long period of time.
In the present day, with the availability of internet and on-line trading facilities, one can trade from their homes at leisure, after careful study. Keeping in touch with financial journals, papers, magazines and TV provide information about companies and their shares. The latest informations help the investor to take proper action, whether to sell their stock, or a portion of them at a particular time.
Selling a stock at appropriate time requires practice. There factors effecting markets include the general economical conditions of the particular country, demand for the product sold by the company in which the investment is made, results of the company, their projections for future performance and so on.
A company may have done well in the past but there is no certainty that this will continue for ever. If the targets have not been achieved by the company for a certain period, the stock value might decrease. So also if their projections are not attractive, demand for that particular stock could be effected.
Bearing in mind some of these factors, one can fix a target where he is ready to sell in case of stocks increasing in value over a period of time. After a decent percentage of profit has been achieved, it would be wise to sell a portion of shares held in that company instead of holding the entire stock. Some other stocks in other companies may be at a loss which can be made up by this method. If the loss making stocks are too bad, further loss can be prevented by selling off the existing stocks.
If the company is known for its stability, by virtue of its financial position, one need not worry even if the stock dips below a certain limit, as it has the potential to rise in future. This exercise can be developed over a period of time with practice. In any case selling a portion of stocks that are profit making is advisable, some stocks can be still held for the future.
One should not become over greedy to make excessive profits as it might suddenly drop and the investor might lose more than expected. To make up the loss, it could take a long period of time.
In the present day, with the availability of internet and on-line trading facilities, one can trade from their homes at leisure, after careful study. Keeping in touch with financial journals, papers, magazines and TV provide information about companies and their shares. The latest informations help the investor to take proper action, whether to sell their stock, or a portion of them at a particular time.
posted by zzzzzzzzzzz at
10:37 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home