A Guide to Selling Stock
Helps to avoid panic stock selling!
Why might a guide to selling stock be useful to you? If you thought share buying was a complicated process, I suggest to you that selling stock can generate more emotion. I have less difficulty in buying stock compared to selling.
Could it be because of the buying process I use? The more likely reason is that I, like most, have difficulty accepting that some investment decisions do not work out as well as others ...
Or in the case where I am making a profit, I have trouble in accepting that the stock may continue to rise in price after I have sold.
My experience suggests that it is too easy to hold on to losing positions.
Rather than holding on too long with the hope that the decline in price may reverse, selling out can mean that you may be able to buy in at a lower price later on, or invest in other shares that are looking more attractive.
As a result, I find it useful to have predetermined ‘rules’ to aid the process of selling stock and avoid panic stock selling. The scenarios below outline my selling ‘rules’.
While some of the decision points in the following scenarios may appear to border on mechanical investing, I consider that it is extremely important to have these ‘rules’ imbedded in my investment plan.
Inaction in some instances can be very costly. However, long-term results are the arbiter as to whether the rules are valuable ones to follow.
The rules cover all the situations that I have encountered. Here they are ...
Of course, if you have encountered other situations, you should consider developing suitable rules to keep you on the straight and narrow.
Return from Guide to Selling Stock to Home Page
|
