When should you sell stocks? Cold Eyes: 30 Years of Stock Investing Experience Part 3

When should you sell stocks ?

Welcome to Cold Eyes: 30 Years of Stock Investing Experience, the third article. If you haven't read the second article, please click here . If you have read the second article, thank you very much for continuing to read.

Newbies who have just entered the stock market often read that the winning method of investment is long-term investment. Does it mean that after I bought the stock for 100,000 yuan and put it there, it will definitely become 1 million in ten years? ?

When should I sell the stock in my hand is one of the most common problems encountered by newbies. When the stock is rising, I am afraid that it will continue to rise. When it is falling, I am reluctant to admit a loss or I am afraid that it is just a technical correction. So when should you sell stocks?

Never think you can buy at every low and sell at every high. It should be stockbrokers who are predicting the market trend every day, not ordinary investors.

Moreover, it is unrealistic to predict whether the stock will rise or fall tomorrow. No one can budget for this. That is why stock market veterans warn people to stick to long-term investments and buy in batches. So how can you tell a good time to sell?

Reasons to buy are offset

Long-term investment is not about marrying him. You don’t need to be with him all your life. When you buy a stock, you must be interested in something about him. It may be because of his industrial monopoly, high technology and strong competitiveness. Or the brand is superior.

Then when he loses that characteristic, it is time for you to consider selling it. It is like the intel CPU market has been surpassed by AMD from an absolute monopoly position. So do you think he will be able to make as much money as before in the future? original

If you can, keep holding it until the day you think he can't.

Set time and goals

If you are buying into a growing company, you can set yourself a time period, say 3 years, during which you must insist on reading his quarterly report every quarter. See if his development meets your expectations. At least every quarter is getting better and better.

If not, you may have to think about whether it is the company's problem or whether there is no room for development in the field in the short term. If a growth company isn't growing as well as blue-chip stocks, you might as well just buy blue-chip stocks.

If the company grows, do you think it can continue to grow? Or do you think other companies may be more competitive than him. If you can, then you should continue to hold until you find a more promising company than him.

Give yourself three reasons not to sell

Don't predict whether the stock will rise or fall tomorrow, you should ask whether the company's business can grow next year?

If you own a company with good fundamentals today, and then watch a company that has never made money for 10 years at the daily limit, don't sell it and then go and speculate with others.

The stock market is irrational. It does not mean that if the performance is good, it will rise immediately, and if the performance is poor, it will immediately fall, but in the long run, the stock price will always return to its value.

When you're about to sell a stock, ask yourself if you have three reasons not to sell.

Next up: Three Uses of Money and Contrarian Investing