Video
Many investors say knowing when to buy a stock is no big deal: It’s knowing when to sell that’s difficult. The following five tips can help investors make the call.
- If a stock hits a price target, it might be time to sell. When they buy a stock, acute investors set a price range at which they’ll consider selling it. They analyze the stock before buying it and determine an estimated range of value. They then sell out of the position as it rises, locking in gains.
- If a company’s fundamentals deteriorate, it might be time to sell. Ideally, this means recognizing when sales, profit margins, cash flows or other key operating fundamentals start to erode, then taking action before the stock price declines. Financial statements can be very revealing.
- If a better opportunity comes along, it might be time to sell. Always compare the potential gains of one stock with others. Opportunity cost is difficult to identify, but it can mean investing in a competitor if its growth prospects are more compelling.
- After a merger, it might be time to sell. Investors who own a stock that’s acquired for a significant premium following a buy out stand to profit.
- And after bankruptcy, it might be time to sell. For tax purposes, it’s important to sell or realize the loss so that it can be used to offset future capital gains and regular income.
Δεν υπάρχουν σχόλια :
Δημοσίευση σχολίου