Rule of thumb for selling stock? (% gains)?

Question

In terms of selling stock, what is the general consensus as to when to sell after a certain % gain in the specific stock. Say I bought stock A at $10/share, after what increase is a good time to sell? 10%? 20%? Many stocks I own have over 10% gains, some over 20%, and I am unsure as to when to sell, or if I should hold them longer hoping to gain even more.

Answer 1

There is a left and right thumb rule of selling. When it has gained all it seems it is going to gain, then it is right to sell, and when it has lost all prospects of gains in its fall, sell what is left.

I've have the opportunity to sell some winning stocks at pauses. It stays at or close to a price for a while, then I sell some. If it then falls, sell the rest, but if it rises some more, let it ride until it either pauses, where I sell some more, or starts to fall, then I sell what is left (unless holding it for the long term, then it doesn't matter, you hold it until the company falls apart or the top brass goes to jail).

Answer 2

Buy and hold. Unless there is a sound business reason for selling the stock -- such as changing business climate or poor performance of the company in general -- you should hold the stock indefinitely.

On top of that, when other holders of the stock go on a profit-taking selling spree as sometimes happens that is an EXCELLENT time to pick up additonal shares at a relative bargain price. Your portfolio's total value may take a temporary sag but unless there is a sound reason for dumping the stock it's price should quickly rebound and continue to appreciate.

It's this methodology that made Warren Buffett the second most wealthy man in the world.

Those who try to "time" the market WILL LOSE far more than they gain over time. Don't be suckered in to that failed method of investment.

Answer 3

Why do you buy stock? Why does anyone buy stock?

To make a profit on monies invested.

Have you made a profit on any gains due to stock increases? Capital gains. How about cash? Made any cash for the cash you sent them? Not yet, not until you actually sell the stock do you actually realize your gains.

So pick a percentage that you like and sell. Make a profit and enjoy the cash.

Otherwise you have only completed half the investing transaction...you bought but never sold.

The moral of this story is....DON'T BE GREEDY

Answer 4

The short answer is that you should sell a stock when you see a better investment that justifies the expenses (comissions+taxes) of selling the stock.

Of course this is nebulous as hell.

There is no universal rule for selling stock. Some people will sell if a stock gains or loses a certain amount. Some people just hold investments until something better comes along (or just hold period). It's really up to you.

Answer 5

See if the economic business enterprise you employ has an internet brokering provider; it rather is less demanding shifting money to the account you will might desire to establish. yet examine their expenditures first. i does no longer recommend Etrade. they have too many ongoing expenditures. in the experience that your economic business enterprise would not have a provider, seem to a pair different economic business enterprise, yet lower back examine their expenditures, bothe purchase/sell expenditures and any account preserving expenditures. till now you purchase any shares, spend some months watching the marketplace, and study any agencies you have an pastime in. Be arranged for a inventory to bypass down when you have offered it, yet once you have picked a sturdy sturdy business enterprise, in time the fee will upward push lower back. undergo in strategies, even the specialists can not consistently anticipate how a business enterprise or the marketplace in many circumstances will bypass. do no longer anticipate to make huge returns.

Answer 6

I never sell as a percent of gains I only sell as a percent of loss - 8% is my point.

Answer 7

If they are going up and all the recent news is good then stay in em they will rise more. It also depends on how much you paid for it and how many shares you got. If your not sure of it sell half and keep half in there.