How do you go about choosing which stocks to sell and when?
Best Answer
951 points
Grudun answered one year ago …
I carefully calculate what I think the stock will be worth based on growth rates over the past 5-10 years with extra weight on the last 2. Then I sell when it is above the value I calculated and/or 3 basic technical indicators all indicate a down trend. I use the 10-day Simple moving average, the MACD(8-17-9), and the Stochastic(14-5). When all 3 of these indicator are negativeI can normally get out before it procedes deeply into a down trend.
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2709 points
Oldman answered one year ago …
I sell a security if it stops paying dividends, I also sell a portion, if by some freak of the market, it's valuation increases more than 100% since purchase (a few recent ones were PCU, SID, GNK, ACH...), but generally only up to the purchase price ... so the remainder are cost free income generators.
Those "winners" have to be compared to the "losers" TMA,AHM, DFR..., and I'd not be considered a roaring success in stock-picks for the long-term, but I've done O.K., by not being a grq (getRichQuick) or greedy person...Remember "Bulls make money, bears do too,.. but pigs get slaughtered".
3680 points
MNSL answered one year ago …
I like to sell stocks when fundamentals become weak for next 5 to 10 years. I also sell when I need money for my commitments and when I see reasonable return. If I see great stock in my portfolio I will try to keep it at least for next 10 years to get above average return. If it is a high dividend yield stock I will sell if company stop dividend payment and reduce dividend by higher percentage.
I do not concern much about short term negative quart ley earnings as long as medium term and long term earnings are safe. I will try to add more to my portfolio if I see rapid growth and earnings in the future
1130 points
sundarkambam answered one year ago …
This is from the link :
http://www.ehow.com/how_547_decide-sell-stock.html
Step 1
Consider selling if the price has dropped substantially or remained stagnant for several months.
Step 2
Think about selling if the price has risen to or beyond a target that you established when you bought the stock.
Step 3
Note whether the company's fundamentals remain strong. You can get the information you need from the Securities and Exchange Commission, which makes corporate filings available for free .
Step 4
Evaluate earnings trends, management changes, revenue growth and other basics to determine whether fundamentals are sound. Even if the stock price is sluggish or, for that matter, has hit new highs, you might want to hang on to the stock if fundamentals remain sound and growth prospects look good.
Step 5
Visit your public library's business reference section and review reports by Value Line and Standard & Poor's. Do they project no price appreciation for the stock?
Step 6
Consider changes in the competition. If an effective new player or several hot new players have entered the market, your stock's growth prospects could be in jeopardy.
Step 7
Think about the company's product line. If the company depends on one product alone and has no plans of broadening its base, perhaps you should think about selling.
Last but not the least :
Consider the tax consequences of selling stock. If you have taxable capital gains, you might want to take some losses to reduce your taxes
