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Sunday, March 9, 2008

When to sell your stocks

  1. Sell if the news cannot get any better.
  2. Sell when your original scenario has been fulfilled.
  3. Sell if things did not go as planned.
  4. Sell on the rebound in the aftermath of material unexpected, discrete bad news.
  5. Sell in certain cases when expected news is delayed.
  6. Sell when you note general euphoria and unusually widespread public participation (strong final-stage indicators.)
  7. Sell if the stock is lazy money and likely to stay that way.
  8. Sell when the stock is unusually far above its moving average.
  9. Sell if you would not buy the stock again at today’s quoted price.
  10. Sell and step aside when experiencing a personal losing streak.
  11. Sell if the stock falls to a level representing a loss of up to 10-20 per cent.
  12. Sell if there are signs that business fundamentals are worsening.
  13. Sell a stock when it has become the market's darling.
  14. Sell when a stock or sector has too large a representation in your portfolio.
  15. Sell when you see more potential for gains elsewhere - even if your sale means a loss.


Investors selling stocks in a disciplined manner using the preceding signals are likely to end up with a good deal of cash before the market moves into a bear cycle.

Read
Selling Strategy - Profiting from Euphoria

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