When to sell
Introduction|
Course|
Q&As |
Recommended reading|
Quiz |
Introduction
Context
Selling is perhaps the most difficult investment art to master. Although various mechanical methods are available, they do not suit all types of investor. Emotions also get in the way of executing them at the right time. But it is only by learning the rules that you can know when it is appropriate to bend or break them.
Prior knowledge required
You will need to understand the basics of value and growth investing, particularly the use of P/E and PEG ratios in purchasing stocks.
Contents
- When should you sell?
- What is your overall strategy?
- Selling for passive investors
- When to take profits as a value investor
- When to take losses as a value investor
- Selling for growth investors
- Mechanical formulas for selling
- Selling in order to reinvest
- Stoplosses
- The argument over stoplosses
- Limitations of stoplosses
- Profit warnings
- Selling for traders
- William O'Neil's trading system
- The most important rule of all
- Emotional problems
- Conclusion