One of the most difficult decisions to make is when to sell an investment. As the
adage says, "Buy Low & Sell High", but when is the right time to sell?
Individual Stocks*
For example, you purchase ABC Company stock for $30 per share. You decided to purchase the stock because you have done your due diligence and believe the fair market value based on historical growth, projected growth, financial ratios, industry ratios, etc. is $45. You plan on selling when the stock hits $40.
Most successful investors take the emotional aspects out of the equation when buying and selling investments. The right time to sell is when you sell, so don’t look back. Each investor should set a target and sell price on their investments at time of purchase. These prices will rise and fall depending upon many factors over time. Have a sell discipline and stop competing with yourself. |
Mutual Funds*
Developing a Mutual Fund sell discipline is completely different than for individual stocks. You purchase a Mutual Fund based on the following reasons (hopefully):
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The founders of Richest Capital have helped many investors develop an Investment
Policy Statement and Buy and Sell disciplines. If you would like help on creating your
Investment Policy Statement or Buy and Sell disciplines, please email
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