2006-09-06 02:12:54 · 10 answers · asked by parr 1 in Business & Finance ➔ Investing
It all depends. Do you need the money? If not, ride the wave until it breaks the upward trendline.
Also, what's your purpose in owning this stock, for the return, for the growth, or something else?
If it's for the return, then as long as it pays a good return, it sounds like you're good shape. Hang with the stock until it turns on you. And even then, if you're only in it for the return, then you might not sell until it really turns south.
Now if you're in it for growth, then the trend is important. As mentioned earlier, you'd stay with it until it broke longer term support. :-)
2006-09-06 02:41:21 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 1⤋
If you sell it, you will no longer be receiving the good return. On top of that will will have to pay a commission to sell it, cutting into your 15% return. Then you will have to pay another commission to reinvest the funds, also cutting into your 15% return. Then come year end, you will have to pay taxes on your 15% return eating some more of it. Before your are all done, you will be lucky to have any return left at all.
Buy good securities and hold on to them.
2006-09-06 11:52:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It cant continue to grow at that rate indefinitely. It cant grow faster than the overall economy, or it would become the economy. So, if its a single stock I would probably sell. If you're diversified then I would practice an asset allocation approach Maintain a percentage in each stock or fund that you're comfortable with and add to investments that have gone down and/or take profits from those that have gone up to maintain the percentages you want.
2006-09-06 10:24:09 · answer #3 · answered by jeff410 7 · 0⤊ 0⤋
Do you need the money for something? Too often people choose not to sell stock to liquidate assets they want to employ for another purpose because of there being some stigma against selling a winning position and having to pay taxes, etc etc. If you need the money, sell, if you don't need the money and you are happy with you portfolio, I would say keep it and determine what your stop loss level will be.
2006-09-06 09:28:10 · answer #4 · answered by schulteraffe 2 · 0⤊ 0⤋
Another possibility is structuring a stock loan..You dont get the current full value of the securities, but you get a large portion of it AND you get to remain in the stock position while pulling out some liquidity. Just watch the fees and interest rate..check out rainmakerint
2006-09-06 09:49:14 · answer #5 · answered by Morgrose 1 · 0⤊ 0⤋
Prior to buying any stock or security, you should always set goals. If your goal was to make 15% on your investment, you should sell. If your goal was to double your money, you shouldn't sell unless you believe the fundamentals of the company have changed (ie: change in management, accounting irregularities, weak demand, etc.).
2006-09-06 09:43:24 · answer #6 · answered by howardrourke 3 · 0⤊ 0⤋
I'm a bit confused by your question..."pays a good return"
You should start with a diversified portfolio and stay diversified. If the performance of your individual investments causes your portfolio to no longer be properly diversified, they you should sell and reallocate.
2006-09-06 09:23:09 · answer #7 · answered by derek 4 · 0⤊ 0⤋
Why would you sell. Let it keep making you money.
2006-09-06 09:18:25 · answer #8 · answered by Chris B 3 · 0⤊ 1⤋
There is some useful advice here.
2006-09-06 10:08:19 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Never. Are you NUTS!?
2006-09-06 09:17:52 · answer #10 · answered by Judge Smails 3 · 0⤊ 1⤋