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I entering newly into stocks. Was wondering usually after what % gain, do you normally sell stocks instead of trying to time the market or do u hold on for a long time ?
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You sell when your macroeconomic forecasting and analysis of the company's latest financial statements indicate to you that the company is not a good value at the current price.
If you are like me and cannot call these things, then stick with index funds and a sensible asset allocation plan. -
^^Agreed. (at least for my strategy anyways)
What strategy did you have for buying the stock in the first place?
Was this a specific stock? Or a mutual fund?Comment
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i started with SPY as a safe bet to begin with. Sometimes, it hits a decent margin. I am not sure if I should book my profit and then invest the principle again or hold on to it for longer term..
Other one i bought is AB, it way below i bought. So thinking of selling to cut the loss.. A friend recommended AB. I try to read about the forecast and analysis and get lost not sure what to look for.Comment
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It's best to set both a stop loss and a sell price when you buy a particular stock. If there are changes in that market segment, or bad news like BP oil spill, you may have another reason to sell. What percentage of your holdings does the stock represent?Comment
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Hardly have any investment in shares..Originally posted by snafu View Post
I have been investing 500$ in SPY for the past about 6-7 months consistently on a set date. But with AB it was one time investment of 1000$. SPY shows gain. But not sure what would be a good margin to book profit or SPY can be maintained for longer term...Comment
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Is SPY, symbol for the S&P 500 Index ETF? If so, you are an indirect holder of a large cross section of Am stock. Since it reflects the stock market, it's value changes daily. Do you re-invest your dividends [DRIP] or take cash?
Caution: if you don't know what you are buying/investing in, you can fall victim to the multitude of scams out there.
My comment was specific to the buy and sell of one specific stock like Apple or WalMart for example.Comment
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Okay, but why did you buy them? What was your strategy?Originally posted by jsk View Post
Just buy something that you'd heard about and hope for the best?
Or buy because your analysis indicated that it was undervalued?
Or buy because it had a technical indicator in your favor?
Or buy because it was a proper fit for your asset allocation given your timeframe?
Or buy because __________________ ??
Why did you buy them? What criteria did you use?Comment
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I agree. Since I've begun reading these forums, it's clear that a lot of people buy individual stocks and don't really know what they're doing, so then panic days ensue when investors pull out. Unless someone is a full-time trader, I don't see how most people can pull ahead by frequent trading.Originally posted by Petunia 100 View PostComment
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Individuals have a ghastly time when computer trading programs abruptly issue 'buy' or 'sell orders and send everything into turmoil. For that reason it's imperative to have a 'stop loss'order for every stock. It means it will be sold at the pre-set price. When I buy an individual stock I note an anticipated sell target. As it reaches that sum a few clicks from my computer lets me re-set the stop-loss at the original 'anticipated' sum.Comment
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When to sell? In about 35 years.Comment
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Call me impulsive; a few years ago, I sold (only a small fraction) of my mutual funds for the first time after holding them for 15 years. :-)Originally posted by BuckyBadger View PostComment
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