Should I sell now & take profit or wait for it to go up more? But I don't really need that $800 yet I still have enough savings.
2007-04-03 12:08:45 · 9 answers · asked by Agent_Detergent 2 in Business & Finance ➔ Investing
I want my money to double but since I'm a beginner I've been reading couple of books that when you made some money better sell some rather than seeing the price go down & not make any profit at all.I want to hold this as a long term investment but I'm bothered about the methods of when to sell it.
2007-04-03 17:35:07 · update #1
Everything is if...if...if...
How much did you invest? Did you make 5% ? 33%? 50%?
If it's a big percentage, sell some of your shares ( take some or all the profit)
If it's a little percentage, just stick with your winner a little longer...
Was it on a buyout ? Then the price isn't going to go up much more.... or is it just a " hot" stock? ( may keep climbing!!
Every day is different, but in general, it never hurts to " take a little profit"....and then keep looking for something even better to work with it.
Nice job, newbie! Good luck!
2007-04-03 12:30:48 · answer #1 · answered by jebediabartlett 6 · 1⤊ 0⤋
There is no way anyone give a good answer for this question with the information you provided. So here are some questions that you can ask yourself:
First off what made your stock rise so fast?
Why did you buy this stock in the first place?
What is the nature of the Corporation who issued the stock?
Does this corporation have a cycle of profit and loss?
What is the highest price for this stock in the past 3 months, 6 months and 1 year?
Is this stock following a historical trend?
Do you have a better place to invest your new found wealth that will perform at least the same if not better?
By answering these questions you may find the answer and if not at least you will be in a better position to make an informed decision.
2007-04-03 12:24:37 · answer #2 · answered by levindis 4 · 1⤊ 0⤋
Well done!
For the sake of argument, I am assuming that this gain isnt from some "event" (a take over or similar event).
The question really comes down to this: do you think the stk has any more upside? If the answer is yes, then let it ride, especially since you said you dont need the money now. Bear in mind that you dont pocket the money until you sell and your paper profit can fall.
Be realistic in your expectations. If you invested in a $10 stk that went up $1 in 15 days, that's a pretty good return, 10% in 2 weeks.
Also, and this is very important, remember that your short-term capital gains are taxed higher than long-term gains. If you sell too quickly, the IRS takes a bigger chunkof your profits.
2007-04-03 13:20:31 · answer #3 · answered by sothere! 3 · 0⤊ 0⤋
Good on you. As a fellow investor, I'd recommend that you profit take. The thing about investing in the stockmarket is that you must always pre-determine your exit strategy before your even place an order.
In other words, always set what percentage profit target you are aiming for and also set the maximum loss you are willing to take. Trade with the trend, especially if you're a newbie.
When you start becoming very emotional about a trade, then this should be your signal to exit. I would recommend you exit now and take your profits. Use the profits to buy something else so as to make more profit.
2007-04-03 12:17:55 · answer #4 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋
This question misses the whole point of investing. You should know why you got into this investment.you should know the fair value of this investment. What is your time horizon. What was your exit strategy before you bought it? The easiest thing is to buy a stock. The hardest is to know when to sell.
Partial suggestion: Put a "trailing stop" on the stock. Make it large enough to keep a good part of your current profits & yet give you more room for appreciation.
2007-04-03 17:17:19 · answer #5 · answered by Common Sense 7 · 0⤊ 0⤋
If you are really "new" to the market, then you are an imbecile. To have made $800 in 15 days, even if you were very, very lucky, you must have had FAR more capital at risk than a neophyte with little experience should have had at risk.
If you are not lying, I predict you will become over-confident in short order, and will crash & burn within a week or two.
Good luck with that!
2007-04-03 14:40:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Hi..
Selling is more important than buying..
Want a profit or a loss?
2007-04-03 18:16:07 · answer #7 · answered by Anonymous · 0⤊ 0⤋
take that profit and put it back into the stock market; and see how it goes from there.
2007-04-03 12:12:20 · answer #8 · answered by savvyladydiamond 3 · 0⤊ 0⤋
what stock????
2007-04-03 12:12:11 · answer #9 · answered by KOISTAN 2 · 0⤊ 0⤋