When To Sell Stocks
When to sell your stocks. How do you know when the market is in the best position for you to sell your stocks? Here are some tips.
Knowing when to buy and when to sell your stocks is a difficult task. With the volatility of the current stock market, it's very tempting to dump your stocks and invest your money some other way that will provide a greater short-term income. But you need to make sure selling is right for your particular situation. Here are some questions you need to ask yourself before you decide you should sell.
• How much does it cost to sell your stocks? Find out from your broker how much in fees you'll have to pay in order to sell. You'll certainly face large brokerage commissions and have to pay quite a bit in taxes.
• Where would you invest your money? Decide this before you sell your stocks, so you can get a better look at why it's such a good idea to sell your stocks. Look at where you would invest your money, how much in fees you'll have to pay to invest that money, and carefully weight the costs and benefits of making the change.
• Has the underlying base of a stock changed? Look closely at the stocks you currently own shares in. Are there signs of trouble in those companies? If the company has a bad year, that doesn't necessarily mean more bad things are to come.
• What are your investing goals? How do your investment goals compare with the direction your current investments are taking? What were your goals when you bought the company? What were expecting? You should evaluate your investments in this manner regularly. Make sure you're on track to reach your investment goals.
• How at risk is your total portfolio because of a single stock? Look at your entire investment portfolio. Is your portfolio doing well despite one particular company? Look at your investments from the broad scale and determine if the a poor performance by one company is worth shucking your entire portfolio, if that's what you'd have to do to sell your stocks. Ask yourself if that's worth it.