Penny Stock, Penny Stocks, Hot Penny Stock, and Hot Penny Stocks Tips and Recommendations:
Posted on 21 October 2012. Tags: stocks to trade
Stock advice about when to buy is common. You can look anywhere in print or online to find tips for knowing just when to buy a stock. However, there is a lot less advice available about understanding which stocks to trade away.
The rules for knowing which stocks to trade are not as clear as those defining the right moment to buy. For example, just because a stock has lost some market value does not mean that you should abandon it. This might mean that you should pause in any attempts to buy more. Every successful stock has had periods in which its value retreated a little. Some very high-priced stocks of today even had near-disasters in the past.
Knowing which stocks to trade comes down to personal needs as well as objective facts about the stock. For example, you may choose to sell a stock that is losing some value because you need cash to buy another stock. It might make sense to sell the stock that is not performing as highly as the others in your portfolio. You may also simply need money.
Sometimes it makes sense to sell a stock that has done extremely well. Most high-performing stocks exist on the razor’s edge. Many people are pouring money into the stock hoping it will go higher. Others are watching for the moment when the momentum seems about to peak. They want to sell at the absolute high point. If you are not paying attention when this happens, you may see the value of your stock plummet as a group of investors decide that these are the stocks to trade at the same time.
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