facebookCan anyone advice on when we should sell a stock? Recently a stock that I have been able to drive down the average cost showed a 6% gain. Unsure whether I should sell it now? - Seedly
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Anonymous

Asked on 23 Jun 2019

Can anyone advice on when we should sell a stock? Recently a stock that I have been able to drive down the average cost showed a 6% gain. Unsure whether I should sell it now?

I am unsure whether to sell it or not because I rly like the business model of the stock and I want to hold onto this stock for long and earn its dividends however I am afraid that this will lead to me not knowing when to sell and miss out on capital gain of the stock.

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Answers (12)

You should sell if

  • Company fundamentals decline. Particularly if the business model changes for the worse.

  • Price is overvalued compared to the intrinsic value of the share

There are far worse things than missing out on the capital gain. Sometimes, sitting and collecting dividends can still be a good thing.

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Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

Wallace Chai

Wallace Chai

Level 9. God of Wisdom

Answered on 07 Dec 2019

Hi there.

Only sell when the business has changed it fundamental. Most of the time money was made when you sit tight into good quality stocks. This is where wealth are being created. Do not just sell to lock in the gains as if it is a good quality business, the price will always follow.

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

Jonathan Ang

Jonathan Ang

Level 7. Grand Master

Answered on 08 Dec 2019

Sell if

1) Your thesis has changed

2) Company's fundamentals have taken a turn

Let us know what t...

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