Tuesday, 29 March 2011
Selling shares at right time
No one knows what will happen in the future, so the only answer anyone can give you is an opinion. our opinion, based on assumption that you are an investor instead of a short-term trader.Share tips provide several way to understand how to sell the share at right time?
The right time to sell all your shares in a company is either (1) when the reason you bought the shares no longer exists or (2) when you have a better use for the money. If you bought the shares because you believed the CEO was bright, honest and hard working, you want to sell if that belief changes, either because the CEO quits or because you no longer agree with the direction he is taking the company. If you bought the shares because you thought the company had the best balance sheet statistics in the industry, it is time to sell when the balance sheet figures deteriorate. If you bought the shares because you thought they were undervalued, sell them when you no longer consider them undervalued.
Obviously, over the course of your investing career, you’ll find other reasons to sell – both market driven and personal. However, if you gauge each situation against the guideposts just presented, it should help ease your uncertainty about making these critical sell decisions – decisions that, when made at the right time, will vastly improve your investment returns