Quote:
Originally Posted by AMSOILGUY
Panic to me happens when you get caught off guard. You made it very clear in the beginning not to invest in things you don't understand or can't see changes in. No gambling! Its weird to look at down times as buying opportunities. I actually get more excited about the down days then the up days.
Call it dumb luck or maybe I was just listening but I was looking at doing new construction of a commercial building. Lots of people I was talking to kept saying that steel prices were going up. I bought 40 shares of (X) 6/27/16 for 15 bucks and now its nearing 30. Not to mention a very talked about sector since the election, I'm actually up 90%. I never thought it was possible. All my childhood all I ever heard was I wish I would have invested in that when it started or something along those lines from family.
Now how do you decide when to sell? I haven't wrapped my head around that part yet.
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********** WHEN TO SELL ?? ****************
I hope I'm awake enough to have this make sense. Selling is the hardest decision to make! Whether you're selling at a loss or trying to capture a profit (gain).
Many factors to think about here:
If you take the gain (loss) is there taxable consequences (Long term or short term gain - makes a HUGE difference in tax rate)
Taxable accounts or IRA?? Makes a big difference!
Do you no longer believe in the underlying reason you bought?
Have you identified what you plan to buy with the funds generated? What makes you think the new purchase will perform any better than what you're planning to sell?
Are you nervous because of the success? Or are you nervous because you have plans to spend the profit and don't want to lose it? Do you need to diversify still - in other words - taking some gain will allow you to spread your wings a bit more.
Is there a dividend about to be paid or going "ex date"?? Don't shoot yourself in the foot and miss a dividend payment!!
These are not argumentative questions! They're just stuff to ask yourself.
Number one question is really -- If you are feeling that you should take some gain -- then DO IT. It's just that simple. You never should feel nervous about your investments
Rarely do I sell all -- I "trim" -- because when I dump the name - the next day it'll open UP $10..... So I drip out - just like I usually drip in.