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

Anonymous

09 Mar 2020

Stocks

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.

Discussion (12)

What are your thoughts?

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There is no right or wrong answer, some people might sell the stocks because they feel that is overvalued while some sell because they need the money. It depends on you.

Sell if

1) Your thesis has changed

2) Company's fundamentals have taken a turn

Let us know what the company is and what price you bought it at, then it will be easier to comment :)

May I find out from you what is the company and the valuations?

Different companies have different valuations, without the company name, it is quite hard to answer your question :(

Let me know!

Pang Zhe Liang

07 Dec 2019

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

Always go back to your investment objective. Understand why you bought the share in the first place.

If you like the business model and it has potential to grow for the long run, then hold it - short term fluctuation is often inevitable.

If the stock has reached its maximum capacity, then sell it and reinvest somewhere else.

At the end of the day, it is all about tradeoff and the last thing to do is to make the wrong decision because of emotions. Therefore, go back to your investment objective to understand why you buy the stock in the first place.

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Elijah Lee

07 Dec 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

You should sell if

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

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