Five reasons to sell a stock, even if your emotions tell you otherwise
Link: Five reasons to sell a stock, even if your emotions tell you otherwise
Extract:
- Massive insider selling
- Portfolio management reasons
- Ridiculous valuations
- ‘Weird’ corporate stuff
- Too much debt
When to push the sell button on a stock
Link: When to push the sell button on a stock
Quote1: “Selling is probably harder than buying, Ms. Poole says. Knowing when to push the button can make all the difference in investing.”
Quote2: “The key, she adds, is to set an exit strategy before buying a stock, taking into account earnings and cash flow projections, and setting target prices. “You want to see at least 15 per cent capital upside, 12 months out. Over time, as the company reports and things happen, that target price can be adjusted upward or downward.””
Quote3: “Determining when to sell is less arbitrary for technical investors. Technical analysis is a method of valuing securities by analyzing past activity to determine trends. In other words, analysts look at the past to determine what will happen in the future.”
Quote4: “One way he determines whether a trend is breaking is to track it side by side with its benchmark. “If it’s in a flat to rising mode [compared to its benchmark] it’s the kind of stock we want to own. If it’s declining against the benchmark index, that’s a stock we typically don’t want to own until there is clear evidence of a reversal,” he says.”
Quote5: “Choosing the time period to determine a trend depends on how long the investor is prepared to hold the stock. “We look at rebalancing on a monthly and quarterly basis, and we want to be sure all variables of a trend are assessed within one to three months,” he says. His advice to investors is to combine technical analysis with the more common fundamental indicators such as earnings and product demand.”
